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

Question

Multiple choice question.

increase, decreases

decrease, decreases

increase, increases

decrease, increases

Answer 1

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

So the correct answer is: increase, decreases.