Which of the following sequences of events is accurate? a. Contractionary monetary policy --> interest rates rise --> real GDP falls --> total income falls --> imports rise --> net exports fall b. Contractionary monetary policy --> interest rates fall --> real GDP rises --> total income rises --> imports rise --> net exports fall c. Contractionary monetary policy --> interest rates rise --> real GDP rises --> total income rises --> imports rise --> net exports fall d. Contractionary monetary policy --> interest rates rise --> real GDP falls --> total income falls --> imports fall --> net exports rise

Which of the following sequences of events is accurate? a. Contractionary monetary policy --> interest rates rise --> real GDP falls --> total income falls --> imports rise --> net exports fall b. Contractionary monetary policy --> interest rates fall --> real GDP rises --> total income rises --> imports rise --> net exports fall c. Contractionary monetary policy --> interest rates rise --> real GDP rises --> total income rises --> imports rise --> net exports fall d. Contractionary monetary policy --> interest rates rise --> real GDP falls --> total income falls --> imports fall --> net exports rise

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter15: The Debate Over Monetary And Fiscal Policy

Section: Chapter Questions

Problem 8DQ

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