Question

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