An increase in the money supply does all of the following except
A) lower interest rates.
B) decrease aggregate supply.
C) raise the level of investment.
D) increase aggregate demand.
E) increase equilibrium income.

Question

Quizplus · Accepted Answer

An increase in the money supply would not decrease aggregate supply, as aggregate supply is determined by factors such as technology, resources, and the efficiency of production. It would, however, lower interest rates, raise the level of investment, increase aggregate demand, and potentially increase equilibrium income.

An Increase in the Money Supply Does All of the Following