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AP® Macroeconomics

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Monetary Policy: Decrease in Aggregate Demand

APMACR-LJ0SPN

A decrease in aggregate demand would result from which of the following monetary policy actions?

Decrease in Aggregate Demand

A

Increase discount rate, sell bonds, increase reserve requirements.

B

Increase discount rate, sell bonds, decrease reserve requirements.

C

Increase discount rate, buy bonds, increase reserve requirements.

D

Decrease discount rate, sell bonds, decrease reserve requirements.

E

Decrease discount rate, buy bonds, decrease reserve requirements.