According to monetary theories,an increase in the money supply shifts 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 money supply typically lowers interest rates, which can increase spending and investment. This leads to a shift in the aggregate demand curve to the right.

According to Monetary Theories,an Increase in the Money Supply Shifts