In the Aggregate Demand-Aggregate Supply Model, the Short-Run Effects of an Unanticipated

question 93

Multiple Choice

In the aggregate demand-aggregate supply model, the short-run effects of an unanticipated decrease in the money supply will be

• A) lower real interest rates and an increase in aggregate demand.
• B) higher real interest rates and an increase in aggregate demand.
• C) lower real interest rates and a reduction in aggregate demand.
• D) higher real interest rates and a reduction in aggregate demand.