An increase in the amount of money in circulation would cause a
A) shift of the aggregate demand curve to the right.
B) shift of the aggregate demand curve to the left.
C) movement up the aggregate demand curve.
D) movement down the aggregate demand curve.

Question

Quizplus · Accepted Answer

An increase in the amount of money in circulation would increase the purchasing power of consumers, leading to an increase in consumption and investment spending. This would result in a shift of the aggregate demand curve to the right, reflecting an increase in overall demand for goods and services.

An Increase in the Amount of Money in Circulation Would