?

AP® Macroeconomics

Free Version

Upgrade subject to access all content

Difficult

Diminished Money Supply

APMACR-PYEJLG

If the Fed sought to drastically reduce Money Supply one would expect

A

interest rates to fall.

B

congress to pass new Minimum Wage laws.

C

the rich to pay higher taxes due to increased nominal wages within our progressive income tax system.

D

GDP to fall unless velocity increased.

E

decreased foreign investment.