582EconomicsMedium
Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an)?
Adecrease in the money demand
Bdecrease in the money supply
Cincrease in the money supply
DNone of the above
Correct answer
B. decrease in the money supply
Explanation
The correct answer is decrease in the money supply.