Question: 6. Using the aggregate supply and demand model, assume the economy is in equilibrium on the intermediate portion of the aggregate supply curve. A decrease

6. Using the aggregate supply and demand model, assume the economy is in equilibrium on the intermediate portion of the aggregate supply curve. A decrease in the money supply will decrease the price level and

a. lower both the interest rate and real GDP.

b. raise both the interest rate and real GDP.

c. lower the interest rate and raise real GDP.

d. raise the interest rate and lower real GDP.

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