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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.1
What is the likely short-term effect of expansionary monetary policy on the interest rate and the money supply?
It lowers the interest rate and decreases the money supply
It raises the interest rate and increases the money supply
It lowers the interest rate and increases the money supply
It raises the interest rate and decreases the money supply
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AP Macroeconomics - 5.1 Fiscal and Monetary Policy Actions in the Short-Run
Key terms
Expansionary Monetary Policy
Interest Rate
Money Supply
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Resources
Cram Mode
AP Score Calculators
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Glossary
Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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