According to the quantity theory of money,an increase in the money supply ________ aggregate ________,everything else held constant.
A)increases; demand
B)decreases; demand
C)decreases; supply
D)increases; supply

Question

Quizplus · Accepted Answer

The quantity theory of money suggests that an increase in the money supply leads to an increase in aggregate demand, assuming other factors remain constant. This is because more money in the economy typically boosts spending and demand for goods and services.

According to the Quantity Theory of Money,an Increase in the Money