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Question
During a period of contractionary monetary policy,
A) the price level is increased, which leads to an increase in the money supply.
B) the price level is decreased ,which leads to a decrease in the money supply.
C) the rate of growth of the money supply is increased, leading to an increase in the price level.
D) the rate of growth of the money supply is reduced, leading to a decrease in the price level.
Answer
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