According to the monetary transmission mechanism, what will be the effect of a decrease in the money supply?
A) An increase in the interest rate, an increase in AD, and an increase in GDP.
B) An increase in the interest rate, an increase in AD, and a decrease in GDP.
C) An increase in the interest rate, a decrease in AD, and a decrease in GDP.
D) A decrease in the interest rate, a increase in AD, and an increase in GDP.
Correct Answer:
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