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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 contractionary monetary policy on the money supply and the interest rate?
It increases the money supply and raises the interest rate
It decreases the money supply and raises the interest rate
It decreases the money supply and lowers the interest rate
It increases the money supply and lowers the interest rate
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AP Macroeconomics - 5.1 Fiscal and Monetary Policy Actions in the Short-Run
Key terms
Contractionary Monetary Policy
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Cram Mode
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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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