A decrease in the money supply is likely to cause a(n) in interest rates, and subsequent in investments and aggregate demand.

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12-07-2022
Business

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A decrease in the money supply is likely to cause a(n) in interest rates, and subsequent in investments and aggregate demand.

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mboluwape mboluwape · Answer 1 · 2022-07-21T16:50:40+02:00

A decrease in the money supply is likely to cause a(n) increase in interest rates, and subsequent decrease in investments and aggregate demand.

What are the effect of decrease in money supply?

When there is a reduction in flow of money it affect the business as well as countries economy such that interest rate are increase to meet up necessary country obligations and enhance money supply within the economy.

These affect individuals demand because more interest rate leads to a reduction in money at hand and how much an individual have to spend.,,

Therefore, A decrease in the money supply is likely to cause a(n) increase in interest rates, and subsequent decrease in investments and aggregate demand.

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A decrease in the money supply is likely to cause a(n) ______ in interest rates, and subsequent ______ in investments and aggregate demand.

Respuesta :

What are the effect of decrease in money supply?

Otras preguntas

A decrease in the money supply is likely to cause a(n) in interest rates, and subsequent in investments and aggregate demand.