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Fill in the following blanks based on the model(s) presented in Ch. 4. Important: Make sure to spell your responses correctly, so that they exactly

Fill in the following blanks based on the model(s) presented in Ch. 4. Important: Make sure to spell your responses correctly, so that they exactly match one of the options provided.

  • A decrease in the money supply leads to (enter 'an increase','a decrease',or 'no change') in the value of the U.S. dollar and(enter 'an increase','a decrease',or 'no change') in the value of foreign currency.
  • This in turn, leads to(enter 'an increase','a decrease',or 'no change') in net exports and aggregate demand.
  • A decrease in the money supply leads to(enter 'an increase','a decrease',or 'no change') in US interest rates.
  • This, in turn, leads to(enter 'an increase','a decrease',or 'no change') in investment spending by firms and aggregate demand.

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