Figure 22-2
Use the pair of diagrams below to answer the following questions.
-Refer to Figure 22-2. If the economy starts at C and 1, then in the short run, a decrease in the money supply moves the economy to

Question

Figure 22-2
Use the pair of diagrams below to answer the following questions. 
-Refer to Figure 22-2. If the economy starts at C and 1, then in the short run, a decrease in the money supply moves the economy to

Quizplus · Accepted Answer

A decrease in the money supply shifts the LM curve to the left, which intersects the IS curve at a lower level of output and a higher interest rate.

Figure 22-2 Use the Pair of Diagrams Below to Answer the Following