Question: Explain the effects of a decrease in the money supply on the bond markets, the money markets, real GDP and the price level? Explain and

Explain the effects of a decrease in the money supply on the bond markets, the money markets, real GDP and the price level? Explain and show these effects on the diagram below.

6. Explain the effects of a decrease in the money supply on the bond markets, the money markets, real GDP and the price level? Explain and show these effects on the diagram below. MS, S SRAS Interest Rate Bond Price B1 Price Level MD D AD O M, Q1 Q1 Quantity of Money Quantity of Bonds Real GDP

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