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Business, 20.12.2019 05:31 18jweeks9

Decreases in the money supply affect the economy indirectly because a. interest rates decrease causing planned investment to increase, which causes an increase in aggregate demand. b. people spend excess money balances and thus, aggregate demand increases. c. interest rates increase, causing planned investment to decrease, which causes a decrease in aggregate demand. d. people have insufficient money balances and thus aggregate demand decreases. e. there is no indirect effect of the money supply on the economy.

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