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I want to know what happens to exchange rates, interest rates, and price index when the U.S money supply falls

2007-08-07 08:40:27 · 1 answers · asked by useru6303 1 in Social Science Economics

1 answers

Tight money (money supply falls) leads to:

Lower Exchange rates (of the money that's being tightened)
Higher Interest rates
Falling Price Index.

2007-08-07 08:53:20 · answer #1 · answered by Giggly Giraffe 7 · 0 0

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