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Which of the following is the immediate and longer-term effect

Which of the following is the immediate and longer-term effect of a decrease in the money supply?A. A decrease in the money supply creates an excess supply of money that is eliminated by rising prices.B. A decrease in the money supply creates an excess supply of money that is eliminated by falling prices.C. A decrease in the money supply creates an excess demand for money that is eliminated by rising prices.D. A decrease in the money supply creates an excess demand for money that is eliminated by falling prices.

 

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