What Would Be the Ultimate Effect of a Reduction in the Money

question 194

Multiple Choice

What would be the ultimate effect of a reduction in the money supply?

• 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)such a monetary policy would have no impact at all

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