Multiple Choice
When the Fed decreases the money supply:
A) aggregate demand and aggregate supply both increase.
B) aggregate demand increases,which leads to movement along the short-run aggregate supply curve.
C) aggregate demand decreases,which leads to movement along the short-run aggregate supply curve.
D) aggregate supply increases,which leads to movement along the aggregate demand curve.
E) aggregate supply decreases,which leads to movement along the aggregate demand curve.
Correct Answer:

Verified
Correct Answer:
Verified
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