According to aggregate demand and supply analysis,a continually increasing money supply causes a ________ in aggregate demand,everything else held constant.
A)continual increase
B)continual decrease
C)one-time increase
D)one-time decrease

Question

Quizplus · Accepted Answer

According to aggregate demand and supply analysis, a continually increasing money supply causes a continual increase in aggregate demand, everything else held constant. This is because increasing the money supply lowers interest rates, which in turn stimulates investment, consumption, and net exports, all of which increase aggregate demand.

According to Aggregate Demand and Supply Analysis,a Continually Increasing Money