Everything else remaining the same, an increase in the quantity of money
A)shifts the aggregate demand curve rightward.
B)shifts the aggregate demand curve leftward.
C)shifts the aggregate supply curve leftward.
D)shifts the aggregate supply curve rightward.
E)creates a movement down along the aggregate demand curve.

Question

Quizplus · Accepted Answer

An increase in the quantity of money will lead to lower interest rates, which will encourage consumption and investment, increasing aggregate demand and shifting the AD curve rightward.

Everything Else Remaining the Same, an Increase in the Quantity