Aggregate demand increases if the quantity of money ________.
A)increases or tax rates decrease
B)remains constant or tax rates increase
C)decreases or tax rates increase
D)or transfer payments decrease

Question

Quizplus · Accepted Answer

An increase in the quantity of money or a decrease in tax rates both lead to an increase in aggregate demand, as they boost consumer spending and investment.

Aggregate Demand Increases If the Quantity of Money ________