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20-12-2022
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Which of the following best describes the cause-effect chain of contractionary monetary policy.
An increase in the money supply will lower the interest rate, increase investment spending, and increase GDP
An increase in the money supply will lower the interest rate, increase investment spending, and decrease GDP
A decrease in the money supply will lower the interest rate, increase investment spending, and decrease GDP
A decrease in the money supply will increase the interest rate, decrease investment spending, and decrease GDP
A decrease in the money supply will increase the interest rate, increase investment spending, and decrease GDP

Answer :

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