08-11-2019
Advanced Placement (AP)

contestada

Question 7(Multiple Choice Worth 4 points)
If the Federal Reserve conducts tight monetary policy to contract the money supply, it is most likely to change investment spending, output, and price level in the following
ways:
Investment Spending / Output / Price Level
Increase / Increase / Increase
Decigase / Increase / Decrease
Decrease / Decrease / Increase
Increase / Decrease / Decrease
Decrease / Decrease / Decrease

Respuesta :

dprabakaran8534 dprabakaran8534

12-11-2019

Answer:Use logic If investment decreases, then of course output will decrease, in turn, the price level will also change.

Explanation:

Answer Link

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