In the Short Run,a Decrease in the Money Supply Causes

question 129

Multiple Choice

In the short run,a decrease in the money supply causes interest rates to

• A)increase,and aggregate demand to shift right.
• B)increase,and aggregate demand to shift left.
• C)decrease,and aggregate demand to shift right.
• D)decrease,and aggregate demand to shift left.

---

Definitions:

Wage Rise

An increase in the base pay rate for an employee or group of employees.

Enterprise Bargaining Agreements

Enterprise Bargaining Agreements are contracts negotiated between employers and employees at the enterprise level to set terms and conditions of employment.

Government Legislation

Laws and regulations enacted by government bodies that can affect individuals, organizations, and the wider society.