The RBA can stimulate the economy by _____, all of which shifts the aggregate demand to the _____.
A)increasing the money supply; right
B)increasing the money supply; left
C)decreasing the interest rate; left
D)increasing the interest rate; right

Question

Quizplus · Accepted Answer

Increasing the money supply means there is more money available for spending, which increases consumption and investment, and thus increases aggregate demand. Shifting aggregate demand to the right means there is higher demand for goods and services, leading to increased economic activity and growth.

The RBA Can Stimulate the Economy by _____, All of Which