Multiple Choice
All else constant, a decrease in the supply of money will lead to
A) an increase in the equilibrium quantity of money and an increase in the equilibrium price of bonds.
B) an increase in the equilibrium quantity of money and a decrease in the equilibrium price of bonds.
C) a decrease in the equilibrium quantity of money and an increase in the equilibrium price of bonds.
D) a decrease in the equilibrium quantity of money and a decrease in the equilibrium price of bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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