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.

---

Definitions:

CPU Clock Speed

The speed at which a computer's central processing unit (CPU) operates, measured in gigahertz (GHz).

MHz

Megahertz; a unit of frequency equal to one million cycles per second, often used to measure the speed of computer processors and transmission rates.

Cloud Storage

Cloud storage refers to a service model in which data is maintained, managed, backed up remotely, and made available to users over the Internet.

Server

A computing configuration that delivers program applications, data assistance, or resources to client computers across a network.