Economics cfa

If a central bank reduces the money supply, this move will most likely lead to a -
A- rise in nominal int rates and a decline in agg price level
B- rise in Nominal int and rise in agg price level

Which one is the correct ans ? Pls someone explain brifly, and what does price level means? Thank you

Inflation/deflation

More money: prices increase (inflation).

Less money: prices decrease (deflation).

So i guess ans is A?

Don’t guess; think.

My ans is A :grinning:

Yes.

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