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MMLU / According to Keynesian theory a decrease in the money supply would

Problem

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question

According to Keynesian theory a decrease in the money supply would

choices

  1. lower interest rates which would encourage borrowing and therefore increase spending.
  2. raise interest rates which would discourage borrowing and therefore increase spending.
  3. raise interest rates which would discourage borrowing and therefore reduce spending.
  4. lower interest rates which would discourage borrowing and therefore reduce spending.

subject

high_school_macroeconomics

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Source and history

Official source

initial import