Question: What is the proper monetary policy during demand pull inflation, and what is the expected chain reaction? Multiple Choice Slower growth in the money supply

What is the proper monetary policy during demand pull inflation, and what is the expected chain reaction?
Multiple Choice
Slower growth in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and GDP.
Slower growth in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and inflation.
Higher growth in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and inflation.
Higher growth in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and GDP.

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