A decrease in money supply causes the real interest rate to ________ and the price level to ________ in general equilibrium.
a. remain unchanged; rise
b. rise; rise
c. fall; fall
d. remain unchanged; fall
Answer: D
A decrease in money supply causes the real interest rate to ________ and the price level to ________ in general equilibrium.
a. remain unchanged; rise
b. rise; rise
c. fall; fall
d. remain unchanged; fall
Answer: D