Monetary policies that cause an increase in the money supply:
A) raise the interest rate, decrease spending on investment and consumer durables, and shift aggregate demand leftward
B) lower the interest rate, decrease spending on investment and consumer durables, and shift aggregate demand rightward
C) lower the interest rate, increase spending on investment and consumer durables, and shift aggregate demand leftward
D) raise the interest rate, increase spending on investment and consumer durables, and shift aggregate demand rightward
E) lower the interest rate, increase spending on investment and consumer durables, and shift aggregate demand rightward
Correct Answer:
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