An inflation rate below the target rate will result in:
A. a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve.
B. a movement up along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve.
C. a movement up along the monetary policy reaction curve and a leftward shift of the dynamic aggregate demand curve.
D. a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve.
Answer: A
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