What would be the ultimate effect of a reduction in the money supply?

Question

Quizplus · Accepted Answer

A reduction in the money supply would lead to a decrease in consumer spending, investment, and government spending, ultimately causing a leftward shift of the aggregate demand curve. This is because there would be less money available for consumers and businesses to spend, leading to a decrease in demand for goods and services. As a result, firms would produce less, leading to lower economic output and higher unemployment.

What Would Be the Ultimate Effect of a Reduction in the Money