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How Will a Decrease in the Money Supply Affect Interest

Question 88

Multiple Choice

How will a decrease in the money supply affect interest rates and aggregate demand in the short term?  


A)  Interest rates will increase, and aggregate demand will shift to the right. 
B)  Interest rates will increase, and aggregate demand will shift to the left. 
C)  Interest rates will decrease, and aggregate demand will shift to the right. 
D)  Interest rates will decrease, and aggregate demand will shift to the left.

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