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Course: AP®︎/College Macroeconomics > Unit 4

Lesson 6: Monetary policy
Economics
AP®︎/College Macroeconomics
Financial sector
Monetary policy
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Using monetary policy to affect the economy

Google Classroom

Problem

The central bank implemented monetary policy that resulted in the shift shown in this graph:
A graph of the money market showing an increase in the money supply leading to a decrease in the nominal interest rate.
Which of the following graphs illustrates the effect of this change on the Aggregate Demand-Aggregate Supply model?
Choose 1 answer: