In the AD/AS model, a reduction of the money supply:

Name: In the AD/AS model, a reduction of the money supply:
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A reduction in the money supply typically leads to higher interest rates, which in turn reduces investment because borrowing becomes more expensive. Higher interest rates can also strengthen the domestic currency, making exports more expensive and imports cheaper, thus reducing net exports. Both of these effects lead to a reduction in aggregate demand.

In the AD/AS Model, a Reduction of the Money Supply