A decrease in the money supply will shift the aggregate curve to the .
a. supply: left.
b. supply: right.
c. demand, left.
d. demand: right.

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Alexismb2028idn Alexismb2028idn

08-01-2021
Business

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A decrease in the money supply will shift the aggregate curve to the .
a. supply: left.
b. supply: right.
c. demand, left.
d. demand: right.

Sagot :

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Parrainidn Parrainidn · Answer 1 · 2021-01-08T19:14:07-05:00

Parrainidn Parrainidn

08-01-2021

Answer: c. demand, left.

Explanation:

When money supply decreases in the economy there will be less cash available for people to spend on consumption as well as investment which are both components of the Aggregate demand curve.

The curve will therefore shift to the left to reflect that Aggregate demand has decreased as a result of the decrease in money supply.

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