A decrease in the supply of money will lead to _____ in equilibrium real GDP and ____ in the equilibrium price level.

Name: A decrease in the supply of money will lead to _____ in equilibrium real GDP and ____ in the equilibrium price level.
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Question

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A decrease in the supply of money typically leads to higher interest rates, which reduces investment and consumption, leading to a decrease in both equilibrium real GDP and the equilibrium price level.

A Decrease in the Supply of Money Will Lead to _____