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