Multiple Choice
If money supply and money demand both fell, but money supply fell more than money demand:
A) interest rates would increase and investment would increase.
B) interest rates would increase and investment would decrease.
C) interest rates would decrease and investment would increase.
D) interest rates would decrease and investment would decrease.
E) the change in interest rates and investment would be indeterminate.
Correct Answer:
Verified
Correct Answer:
Verified
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