In which case does the aggregate demand curve shift right?
A)the price level rises, making the interest rate drop
B)the price level falls, making the interest rate drop
C)the money supply increases, making the interest rate drop
D)the money supply decreases, making the interest rate drop

Question

Quizplus · Accepted Answer

Increasing the money supply will lower interest rates, leading to increased borrowing and spending by consumers and firms, which will shift the aggregate demand curve to the right.

In Which Case Does the Aggregate Demand Curve Shift Right