Question: Everything else equal, a decrease in the money supply by the central bank would __________. a. Decrease the supply of loanable funds, shift the supply

Everything else equal, a decrease in the money supply by the central bank would __________.

a.

Decrease the supply of loanable funds, shift the supply of funds curve to the right and increase the interest rate in the economy.

b.

Increase the supply of loanable funds, shift the supply of funds curve to the right and increase the interest rate in the economy.

c.

Increase the supply of loanable funds, shift the supply of funds curve to the left and decrease the interest rate in the economy.

d.

Decrease the supply of loanable funds, shift the supply of funds curve to the left and increase the interest rate in the economy.

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