A decrease in the supply of money will lead to a(n)
A) increase in equilibrium real GDP and an increase in equilibrium price level.
B) increase in equilibrium real GDP and a decrease in equilibrium price level.
C) decrease in equilibrium real GDP and an increase in equilibrium price level.
D) decrease in equilibrium real GDP and a decrease in equilibrium price level.
Ans: D) decrease in equilibrium real GDP and a decrease in equilibrium price level.
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What will be an ideal response?
Which of the following would be most likely to shift the consumption function downward?
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