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In the Short Run, a Decrease in the Money Supply

Question 64

Multiple Choice

In the short run, a decrease in the money supply causes interest rates and aggregate demand to do what?


A) It causes interest rates to increase and aggregate demand to shift right.
B) It causes interest rates to increase and aggregate demand to shift left.
C) It causes interest rates to decrease and aggregate demand to shift right.
D) It causes interest rates to decrease and aggregate demand to shift left.

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