If a country's central bank contracts the money supply, the aggregate demand curve shifts to the left.

Name: If a country's central bank contracts the money supply, the aggregate demand curve shifts to the left.
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When the money supply is reduced, interest rates are likely to rise, which in turn reduces consumption and investment spending, leading to a decrease in aggregate demand. Therefore, the aggregate demand curve shifts to the left.

If a Country's Central Bank Contracts the Money Supply, the Aggregate