Question

Which of the following is the path through which contractionary monetary policy works? A. Money down implies interest rate up implies investment down implies income down. B. Money down implies interest rate down implies investment down implies income down. C. Money down implies interest rate up implies investment up implies income down. D. Money down implies interest rate down implies investment up implies income down.

Answer 1

Answer and Explanation:

B. Money down implies interest rate down implies investment down implies income down.