Other things being equal,a reduction in the money supply will lead to a
A) fall in the rate of interest and an increase in desired investment expenditure.
B) rise in the rate of interest and in increase in desired investment expenditure.
C) fall in the rate of interest and a decrease in desired investment expenditure.
D) rise in the rate of interest and a decrease in desired investment expenditure.
E) rise in the rate of interest and no change in desired investment expenditure.
Correct Answer:
Verified
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A)positive
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