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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