Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and decrease the money supply when the price level rises.If the economy starts from long-run equilibrium and aggregate supply shifts left,the central bank must
A) decrease the money supply so interest rates rise.
B) decrease the money supply so interest rates fall.
C) increase the money supply so interest rates rise.
D) increase the money supply so interest rates fall.
Correct Answer:
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