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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.

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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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