According to Keynesian theory, an decrease in the money supply will cause
A) interest rates to fall and the quantity of investment to rise, leading to a decrease in aggregate demand.
B) interest rates to rise and the quantity of investment to rise, leading to a decrease in aggregate demand.
C) interest rates to fall and the quantity of investment to rise, leading to an increase in aggregate demand.
D) interest rates to rise and the quantity of investment to fall, leading to a decrease in aggregate demand.
Correct Answer:
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A) increases in the
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