In the AD-AS diagram,an increase in money supply growth causes:
A) a shift of the aggregate demand curve to the left.
B) a shift of the aggregate demand curve to the right.
C) a downward movement along the aggregate demand curve.
D) an upward movement along the aggregate demand curve.

Question

Quizplus · Accepted Answer

An increase in money supply growth typically lowers interest rates, which encourages borrowing and spending. This leads to an increase in aggregate demand, represented by a rightward shift of the aggregate demand curve in the AD-AS diagram.

In the AD-AS Diagram,an Increase in Money Supply Growth Causes