A decrease in the supply of money shifts the aggregate _____ curve to the _____.
A) supply; left
B) supply; right
C) demand; left
D) demand; right

Question

Quizplus · Accepted Answer

A decrease in the supply of money reduces consumers' and businesses' spending power, which leads to a decrease in overall demand for goods and services. This is represented by a leftward shift in the aggregate demand curve.

A Decrease in the Supply of Money Shifts the Aggregate