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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.
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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.

User Natural
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1 Answer

11 votes

Answer: c. demand, left.

Step-by-step 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.

User Richard Ginsberg
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