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22 November, 11:34

A. people have insufficient money balanceshave insufficient money balances and thus, aggregate demand decreasesdecreases.

b. interest rates increaseincrease causing planned investment to decreasedecrease , which causes a decreasea decrease in aggregate demand.

c. people spend excess money balancesspend excess money balances and thus aggregate demand increasesincreases.

d. interest rates decreasedecrease , causing planned investment to increaseincrease , which causes an increasean increase in aggregate demand.

e. there is no indirect effect of the money supply on the economy.

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  1. 22 November, 11:49
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    b. interest rates increaseincrease causing planned investment to decreasedecrease , which causes a decreasea decrease in aggregate demand.
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