MS, MS, MD M2 M, QUANTITY OF MONEY The graph above shows a decrease in the money supply. Which of the following is consistent with this change? O Contractionary Fiscal Policy is used to reduce income and increase Inflation O Expansionary Monetary Policy is used to lower interest rates and decrease Inflation O Expansionary Fiscal Policy is used to decrease income and decrease Inflation O Contractionary Monetary Policy is used to increase interest rates and decrease Inflation NOMINAL * INTEREST RATE

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