An inflation rate above the target rate will result in:
A) a movement up along the monetary policy reaction curve and a movement up the dynamic aggregate demand curve.
B) a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve.
C) a movement up along the monetary policy reaction curve and a leftward shift of the dynamic aggregate demand curve.
D) a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve.
Correct Answer:
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A) is the
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