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