the government decreases the supply of money, there is anincrease in the general level of prices.

Name: the government decreases the supply of money, there is anincrease in the general level of prices.
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Question

Quizplus · Accepted Answer

If the government decreases the supply of money, then there will be a decrease in the general level of prices, not an increase. This is because with less money in circulation, there will be less demand for goods and services, causing prices to fall.

The Government Decreases the Supply of Money, There Is Anincrease