When the Fed decreases the money supply:

A) aggregate demand and aggregate supply both increase.
B) aggregate demand increases,which leads to movement along the short-run aggregate supply curve.
C) aggregate demand decreases,which leads to movement along the short-run aggregate supply curve.
D) aggregate supply increases,which leads to movement along the aggregate demand curve.
E) aggregate supply decreases,which leads to movement along the aggregate demand curve.

Money Supply

The entirety of assets available in monetary form within an economy's borders at a particular moment, consisting of cash, coinage, and records of balances in savings and checking accounts.

Aggregate Demand

The total amount of goods and services in an economy that will be purchased at all possible price levels in a given period.

Aggregate Supply

Aggregate supply is the total supply of goods and services that firms in a national economy plan to sell during a specific time period, affected by several factors including production costs and labor availability.