If there is a leftward shift in the money supply curve

Name: If there is a leftward shift in the money supply curve
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A leftward shift in the money supply curve means there is less money available in the economy. This will lead to an increase in the interest rate, which will cause the quantity demanded of money to decrease as people will be less willing to borrow at higher rates. Therefore, the correct answer is D, as there will be a decrease in the quantity demanded of money.

If There Is a Leftward Shift in the Money Supply