Macroeconomics 20th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 20

Suppose the supply of money declines to $100 billion. The equilibrium interest rate would:
A) fall, the amount of money demanded for transactions would rise, and the amount of money demanded as an asset would decline.
B) rise, and the amounts of money demanded both for transactions and as an asset would fall.
C) fall, and the amounts of money demanded both for transactions and as an asset would increase.
D) rise, the amount of money demanded for transactions would he unchanged, and the amount of money demanded as an asset would decline.