When the Fed Decreases the Money Supply, _____

Multiple Choice

When the Fed decreases the money supply, _____

A) aggregate demand and aggregate supply both increase.
B) aggregate demand increases, which leads to a movement along the short-run aggregate supply curve.
C) aggregate demand decreases, which leads to a movement along the short-run aggregate supply curve.
D) aggregate supply increases, which leads to a movement along the aggregate demand curve.
E) aggregate supply decreases, which leads to a movement along the aggregate demand curve.