An open market purchase,a decrease in the discount rate,and a decrease in the reserve requirement would shift the aggregate demand curve rightward.

Question

Quizplus · Accepted Answer

Open market purchases increase the money supply, decreasing the interest rate and increasing spending, which shifts AD to the right. Similarly, a decrease in the discount rate and reserve requirement also increase the money supply, making it easier for banks to lend and increasing spending, thereby shifting AD to the right.

An Open Market Purchase,a Decrease in the Discount Rate,and a Decrease