Arrange the following steps in the correct sequence regarding the impact of decreased consumer money holdings on the money market dynamics and overall economic activity: A) Decreased consumer money holdings lead to increased use of credit; B) This shift causes a leftward movement in the money demand curve; C) As a result, equilibrium interest rates fall; D) Lower interest rates stimulate economic activity through increased investment.

When consumers hold less money, they often rely more on credit to make purchases, which is the first step in this sequence. This increased reliance on credit leads to a shift in the money demand curve, moving it to the left because people are not needing to hold as much cash. With this leftward movement in the demand curve, the equilibrium interest rates in the money market start to fall. As interest rates decrease, borrowing becomes cheaper, encouraging businesses and consumers to invest more, which stimulates overall economic activity. For example, if a business finds it cheaper to borrow money, it might decide to expand its operations, leading to more jobs and economic growth.