In the Short-Run Macro Model,a Decrease in the Money Supply

question 18

Multiple Choice

In the short-run macro model,a decrease in the money supply will

• A) lower the interest rate,increase spending,and increase GDP
• B) lower the interest rate,reduce spending,and lower GDP
• C) raise the interest rate,increase spending,and increase GDP
• D) raise the interest rate,reduce spending,and lower GDP
• E) raise the interest rate,reduce spending,and increase GDP

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