If Federal Reserve decides to decrease the money supply in the United States, what will happen to: (1) the interest rate; (2) the level of investment spending in America; (3) the level of GDP; (4) the level of money demand; (3) the U.S interest rate; (4) the level of U.S. Investment spending. In your answer, please draw the changes in the IS Curve and the LM Curve if there are any.
Hi there! Click one of our representatives below and we will get back to you as soon as possible.