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(Figure: Changing Money Supply) What Do Graphs 'A' and 'B

Question 42

Multiple Choice

(Figure: Changing Money Supply) What do graphs 'A' and 'B' represent for an economy?
(Figure: Changing Money Supply)  What do graphs 'A' and 'B' represent for an economy?    A)   A  represents an expansionary monetary policy;  B  represents a contractionary monetary policy B)   A  represents a contractionary monetary policy;  B  represents an expansionary monetary policy C)   A  represents an economy moving out of an inflationary boom;  B  represents an economy moving out of a recession D)   A  represents a decrease in money demand;  B  represents an increase in money demand


A) "A" represents an expansionary monetary policy; "B" represents a contractionary monetary policy
B) "A" represents a contractionary monetary policy; "B" represents an expansionary monetary policy
C) "A" represents an economy moving out of an inflationary boom; "B" represents an economy moving out of a recession
D) "A" represents a decrease in money demand; "B" represents an increase in money demand

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