Multiple Choice
Identify the correct statement about changes in money supply.
A) A decrease in money supply causes interest rates to fall.
B) A decrease in money supply causes investment spending to increase.
C) A decrease in money supply causes gross domestic product to increase.
D) A decrease in money supply causes investment spending to decrease.
E) A decrease in money supply causes aggregate expenditure to increase.
Correct Answer:
Verified
Correct Answer:
Verified
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