A. people have insufficient money balanceshave insufficient money balances and thus, aggregate demand decreasesdecreases.
b. interest rates increaseincrease causing planned investment to decreasedecrease , which causes a decreasea decrease in aggregate demand.
c. people spend excess money balancesspend excess money balances and thus aggregate demand increasesincreases.
d. interest rates decreasedecrease , causing planned investment to increaseincrease , which causes an increasean increase in aggregate demand.
e. there is no indirect effect of the money supply on the economy.
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