A Decrease in the Supply of Money with No Change

question 263

Multiple Choice

A decrease in the supply of money with no change in demand for money will lead to a(n) _____ in the equilibrium quantity of money and a _____ in the equilibrium interest rate.

• A) increase; rise
• B) increase; fall
• C) decrease; rise
• D) decrease; fall

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Definitions:

Nineteenth Century

A century characterized by the rapid industrialization in Europe and America, significant social and political change, and the expansion of European empires globally.

Japan

An island country in East Asia, known for its rich culture, technological advancements, and significant historical influence.

U.S. Trade

Refers to the importing and exporting activities and policies of the United States with foreign countries.

Fugitive Slave Act

1850 law that gave the federal government authority in cases involving runaway slaves; aroused considerable opposition in the North.