what-happens-to-the-money-demand-curve-if-the-central-bank-decreases-the-money-s

Question

What happens to the money demand curve if the central bank decreases the money supply?

Accepted Answer

Interest rates increase, leading to a movement along the money demand curve.

Answer

Interest rates decrease, leading to a shift in the money demand curve.

Answer

Interest rates remain unchanged, leading to a shift in the money demand curve.

Answer

Interest rates increase, leading to a shift in the money demand curve.