Which of the following changes shifts the AD curve up and to the right?
A)A rise in the nominal money supply
B)An increase in income taxes
C)An increase in the risk on nonmonetary assets
D)A decrease in the future marginal productivity of capital

Question

Quizplus · Accepted Answer

An increase in the nominal money supply increases consumer spending, investment spending, and net exports, shifting the AD curve up and to the right.

B) An increase in income taxes would decrease consumer and investment spending, shifting the AD curve down and to the left.

C) An increase in the risk on nonmonetary assets would decrease investment spending, shifting the AD curve down and to the left.

D) A decrease in the future marginal productivity of capital would decrease investment spending, shifting the AD curve down and to the left.

Which of the Following Changes Shifts the AD Curve Up