Which of the following statements best describes the impact of a decrease in the money supply? ?

An increase in money supply will shift the LM curve to the right. This directly reduces the local interest rate and in turn forces the local interest rate lower than the global interest rate. This depreciates the exchange rate of local currency through capital outflow. The depreciation makes local goods cheaper compared to foreign goods and increases export and decreases import. Hence, net export is increased. Increased net export leads to the shifting of the IS curve to the right to the point where the local interest rate will equalize with the global rate. This increases the overall income in the local economy. A decrease in money supply will cause the exact opposite of the process. so with that information you will be able to answer your question

A. The value of money increases and the price level decreases.

B. why are you getting people to do your homework? lookup the answer for yourself so you LEARN something.

C

None of the above. TOTAL ANARCHY is the answer.