Which of the following increases aggregate demand and shifts the AD curve rightward?
A)An increase in the quantity of money and a resulting fall in the interest rate
B)An increase in the exchange rate that makes imports less expensive
C)Predictions of a recession that lead to expectations of lower future income
D)A fall in the price level

Question

Quizplus · Accepted Answer

An increase in the quantity of money typically lowers interest rates, which encourages more borrowing and spending by consumers and businesses, thereby increasing aggregate demand and shifting the AD curve to the right.

Which of the Following Increases Aggregate Demand and Shifts the AD