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3 years ago

8

What happens when money supply decreases?

Advanced Placement (AP)

1 answer:

lubasha [3.4K]3 years ago

8 0

Therefore aggregate demand will increase. The reverse will be true when money supply decreases. That is a decrease in the money supply will lead to a decrease in the amount of money that people and firms will hold and as a result they will spend less. This will cause aggregate demand to decrease. YOUR WELCOME

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