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Other things equal, a dramatic decrease in the money supply would: A. increase the purchasing power of each dollar B. reduce the purchasing power of each dollar C. have an ambiguous impact on the purchasing
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Other things equal, a dramatic decrease in the money supply would: A. increase the purchasing power of each dollar B. reduce the purchasing power of each dollar C. have an ambiguous impact on the purchasing power of each dollar D. increase the price level

User Tary
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Answer:

A. increase the purchasing power of each dollar

Step-by-step explanation:

A decrease in money supply increases the interest rate, price level falls and the value of the dollar increases. This increases the purchasing power of the dollar

User Styphon
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