Explain why a contractionary monetary policy would not necessarily result in interest rates rising by the full amount of what the initial contraction would produce. In other words, if there were no impact on the goods market the interest rate would rise to a higher level. Given that there is an impact explain how this works.

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The Answer of Explain why a contractionary monetary policy would not necessarily result in interest rates rising by the full amount of what the initial contraction would produce. In other words, if there were no impact on the goods market the interest rate would rise to a higher level. Given that there is an impact explain how this works.

Explain Why a Contractionary Monetary Policy Would Not Necessarily Result