Sabrinalol3314 Sabrinalol3314
  • 29-04-2024
  • Business
Answered

Assume that investment spending depends only on the interest rate and no longer depends on output. Given this information, a decrease in money supply:

a. will cause investment to increase.
b. may cause investment to increase or decrease.
c. will have no effect on output.
d. will cause a reduction in output and have no effect on the interest rate.
e. will cause investment to decrease.



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