What will happen to the equilibrium interest rate when both the money supply and real GDP decrease?

Question

Quizplus · Accepted Answer

When both the money supply and real GDP decrease, the effect on the equilibrium interest rate is ambiguous because a decrease in money supply tends to increase interest rates, while a decrease in real GDP tends to decrease interest rates. The net effect depends on the relative magnitudes of these changes.

What Will Happen to the Equilibrium Interest Rate When Both