The Ultimate Effect of a Reduction in the Money Supply

question 127

Multiple Choice

The ultimate effect of a reduction in the money supply is:

• A)a leftward shift of the aggregate demand curve.
• B)a rightward shift of the short-run aggregate supply curve.
• C)a movement upward along the aggregate demand curve.
• D)a movement downward along the aggregate demand curve.
• E)a movement upward along the short-run aggregate supply curve.

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