According to Keynes, the effect on planned real investment spending resulting from the interest-rate impact of a decrease in the money supply

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According to Keynesian economics, a decrease in the money supply leads to an increase in interest rates. This increase in interest rates leads to a decrease in planned real investment spending, which is a component of the aggregate demand. This decrease in spending then sets off the multiplier effect, which causes a decrease in overall economic activity.

According to Keynes, the Effect on Planned Real Investment Spending