Multiple Choice
What is the immediate and longer-term effect of a decrease in the money supply?
A) A decrease in the money supply creates an excess supply of money that is eliminated by rising prices.
B) A decrease in the money supply creates an excess supply of money that is eliminated by falling prices.
C) A decrease in the money supply creates an excess demand for money that is eliminated by rising prices.
D) A decrease in the money supply creates an excess demand for money that is eliminated by falling prices.
Correct Answer:
Verified
Correct Answer:
Verified
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