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In the short run, a tight monetary policy tends to cause
(A) a decrease in the interest rate and a decrease in prices
(B) a decrease in the interest rate and an increase in private investment
(C) a decrease in prices and an increase in private investment
(D) an increase in the interest rate and an increase in private investment
(E) an increase in interest rate and a decrease in private investment

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In the short run, a tight monetary policy tends to cause(A) a decr.pdf

  • 1. In the short run, a tight monetary policy tends to cause (A) a decrease in the interest rate and a decrease in prices (B) a decrease in the interest rate and an increase in private investment (C) a decrease in prices and an increase in private investment (D) an increase in the interest rate and an increase in private investment (E) an increase in interest rate and a decrease in private investment