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Monetary Policy
Draw a diagram to show how a contractionary monetary policy affects the exchange rate. Assume that prices are sticky and that the policy action is credible ( people's expectations are affected by
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Over time, contractionary monetary policy _____ nominal wages and causes the short-run aggregate supply curve to shift _____. a. raises; leftward b. lowers; leftward c. raises; rightward d. lowers; rightward | Homework.Study.com
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