Author Question: Contractionary monetary policy will result in A) higher interest rates. B) increased rates of ... (Read 118 times)

Redwolflake15 · **on:** Jun 29, 2018

Contractionary monetary policy will result in

A) higher interest rates. B) increased rates of inflation.
C) a leftward shift in the long-run Phillips curve. D) an upward shift in the short-run Phillips curve.

Question 2

An increase in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate.

A) increases; decreases B) decreases; decreases
C) decreases; increases D) increases; increases