Multiple Choice
A decrease in the money supply
A) lowers the interest rate, causing a decrease in investment and a decrease in GDP.
B) lowers the interest rate, causing a decrease in investment and an increase in GDP.
C) raises the interest rate, causing an increase in investment and a decrease in GDP.
D) raises the interest rate, causing an increase in investment and an increase in GDP.
E) raises the interest rate, causing a decrease in investment and a decrease in GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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