Which of the following changes is most likely to happen when there is a decrease in the supply of money in a market that was initially in equilibrium?

A) The demand for money increases
B) Planned investment spending increases
C) Interest rate increases
D) Aggregate expenditure increases
E) The demand for money decreases

Supply of Money

The total amount of monetary assets available in an economy at a specific time, encompassing currency and various types of deposits.

Interest Rate

The interest rate represents the cost of borrowing money, often set by central banks, and is pivotal in determining the economic activity by influencing consumer spending and savings.

Aggregate Expenditure

The aggregate expenditure in an economy, which accounts for consumer spending, business investments, government spending, and the difference between exports and imports.