Multiple Choice
Suppose the Bank of Canada increases the money supply. We can expect, other things constant:
A) interest rates to rise and the aggregate demand curve to shift rightward.
B) interest rates to fall and the aggregate demand curve to shift leftward.
C) interest rates to fall and the aggregate demand curve to shift rightward.
D) interest rates to rise and the aggregate demand curve to shift leftward.
Correct Answer:
Verified
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