According to Environment Canada, the cornerstone of the Canadian Environmental Protection Act (CEPA) of 1999 is

A decrease in income ________

A) lowers money demand for any given interest rate B) lowers interest rates ceteris paribus C) leads to a leftward shift of the money demand curve D) all of the above E) none of the above

When the money supply decreases

a. interest rates fall and so aggregate demand shifts right. b. interest rates fall and so aggregate demand shifts left. c. interest rates rise and so aggregate demand shifts right. d. interest rates rise and so aggregate demand shifts left.