Question
During the Great Depression, a commitment to the Gold Standard required the Federal Reserve to raise interest rates to attract more gold into its reserves.
During the Great Depression, a commitment to the Gold Standard required the Federal Reserve to raise interest rates to attract more gold into its reserves. Using the AS/AD model, what impact did this have?
Group of answer choices
LRAS & SRAS shifts right
LRAS & SRAS shifts left
AD shifts left
SRAS shifts right; LRAS does not shift
SRAS shifts left; LRAS does not shift
AD shifts right
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
