Which of the following situations would induce a shift of the aggregate demand to the right?
A)The price level and government expenditures decreased.
B)The price level decreased, and the government instituted an investment tax credit.
C)Government expenditures and the money supply increased.
D)The bank rate increased, and the dollar appreciated.

Question

Quizplus · Accepted Answer

An increase in government expenditures and the money supply typically boosts aggregate demand, shifting it to the right.

Which of the Following Situations Would Induce a Shift of the Aggregate