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

Question

Quizplus · Accepted Answer

An increase in the quantity of money will lead to an increase in aggregate demand, as households and firms have more spending power. This will shift the aggregate demand curve to the right.

Everything Else Remaining the Same, an Increase in the Quantity