An increase in the amount of bank loans should shift the aggregate:
A) Supply curve to the left.
B) Supply curve to the right.
C) Demand curve to the left.
D) Demand curve to the right.

Question

Quizplus · Accepted Answer

An increase in the amount of bank loans will likely lead to an increase in consumer and business spending, which in turn increases the aggregate demand. Therefore, the demand curve will shift to the right.

An Increase in the Amount of Bank Loans Should Shift