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Assume that investment spending depends only on the interest rate and no longer depends on output. Given this information, a decrease in money supply: a.

Assume that investment spending depends only on the interest rate and no longer depends on output. Given this information, a decrease in money supply:

a. will cause investment to increase.

b. may cause investment to increase or decrease.

c. will have no effect on output.

d. will cause a reduction in output and have no effect on the interest rate.

e. will cause investment to decrease.

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