If the Fed adopts a contractionary monetary policy,eventually we can expect:

A) aggregate demand to increase.
B) short-run aggregate supply to decrease.
C) interest rates to decrease.
D) planned investment expenditures to decrease.
E) real Gross Domestic Product to increase.

Contractionary Monetary Policy

A form of monetary policy that aims to reduce the rate of monetary expansion to tackle inflation, often by increasing interest rates.

Aggregate Demand

All-encompassing demand for goods and services within an economic framework, fixed at a particular price point and time frame.

Interest Rates

represent the cost of borrowing money or the return on savings, playing a crucial role in influencing economic activity and financial decisions.