When the Central Bank Contracts the Money Supply, the Interest

Multiple Choice

When the central bank contracts the money supply, the interest rate rises to bring the money market into equilibrium and reduces the quantity of goods and services demanded for any given price level. This:

A) shifts the aggregate demand curve to the right.
B) shifts the aggregate demand curve to the left.
C) shifts the aggregate supply curve to the right.
D) shifts the aggregate supply curve to the left.