According to Keynesian analysis, what outcome will follow a fall in the money supply?
- AThe rate of interest will be reduced, thereby reducing the levels of investment and income.
- BThe rate of interest will be increased, thereby reducing the levels of investment and income.
- CThe level of income will be increased as a result of a lower rate of interest and a higher level of investment.
- DThe price level will fall by the same percentage change as the decrease in the money supply.