Which of the following increases aggregate demand and shifts the AD curve rightward?
A) a fall in the price level
B) an increase in the quantity of money and a resulting fall in the interest rate
C) predictions of a recession that lead to expectations of lower future income
D) an increase in the exchange rate that makes imports less expensive

Question

Quizplus · Accepted Answer

An increase in the quantity of money typically leads to a fall in interest rates, which encourages borrowing and spending. This increase in spending shifts the aggregate demand (AD) curve rightward, indicating an increase in the total demand for goods and services in an economy at a given price level.

Which of the Following Increases Aggregate Demand and Shifts the AD