Which statement describes the impact of decreasing the money supply?
1) Buying bonds raises interest rates, increasing aggregate demand (C+I+G+x-IM)
2) Selling bonds lowers interest rates, decreasing aggregate demand (C+I+G+x-IM)
3) Decreasing the money supply has no impact on interest rates or aggregate demand
4) Decreasing the money supply raises interest rates, decreasing aggregate demand (C+I+G+x-IM)