In Figure 15.2,if the money supply decreased from $200 billion to $100 billion,which of the following would be likely to occur?

Name: In Figure 15.2,if the money supply decreased from $200 billion to $100 billion,which of the following would be likely to occur?
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A decrease in the money supply would lead to an increase in interest rates, making borrowing and investment more expensive. This would lead to a decrease in aggregate demand as consumers and firms would reduce their spending and investment.