![Draw a diagram to show how a contractionary monetary policy affects the exchange rate. Assume that prices are sticky and that the policy action is credible ( people's expectations are affected by Draw a diagram to show how a contractionary monetary policy affects the exchange rate. Assume that prices are sticky and that the policy action is credible ( people's expectations are affected by](https://homework.study.com/cimages/multimages/16/monetary_policy5326695766590435010.png)
Draw a diagram to show how a contractionary monetary policy affects the exchange rate. Assume that prices are sticky and that the policy action is credible ( people's expectations are affected by
![3.5 (Macro) Demand-side policies: Contractionary monetary policy (Keynesian); 3.3 Demand-pull infl. - YouTube 3.5 (Macro) Demand-side policies: Contractionary monetary policy (Keynesian); 3.3 Demand-pull infl. - YouTube](https://i.ytimg.com/vi/nDFGGgMhYbg/maxresdefault.jpg)
3.5 (Macro) Demand-side policies: Contractionary monetary policy (Keynesian); 3.3 Demand-pull infl. - YouTube
![Explain, with the aid of a diagram, how monetary policy affects aggregate demand, the inflation rate, and output. | Homework.Study.com Explain, with the aid of a diagram, how monetary policy affects aggregate demand, the inflation rate, and output. | Homework.Study.com](https://homework.study.com/cimages/multimages/16/captura_de_pantalla_2020-11-16_a_las_9.29.537963643267959408410.png)