Restrictive monetary policy by lowering the money supply

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If the Federal Reserve is following a restrictive monetary policy by lowering the money supply in the economy, what will be its effect on the equilibrium outcome in the economy? Explain using AS-AD analysis.

Reference no: EM131110324

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Restrictive monetary policy by lowering the money supply : If the Federal Reserve is following a restrictive monetary policy by lowering the money supply in the economy, what will be its effect on the equilibrium outcome in the economy? Explain using AS-AD analysis.
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