If the money supply decreases,the opportunity cost of holding money __________ and people will want to hold __________ quantity of money.

Name: If the money supply decreases,the opportunity cost of holding money __________ and people will want to hold __________ quantity of money.
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Question

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When the money supply decreases, interest rates tend to rise, increasing the opportunity cost of holding money. As a result, people will want to hold a smaller quantity of money.

If the Money Supply Decreases,the Opportunity Cost of Holding Money