Which of the following shifts aggregate demand to the right?
A) the federal government reduces purchases of new weapons
B) an increase in the money supply
C) the price level falls
D) net exports fall

Question

Quizplus · Accepted Answer

An increase in the money supply would lower interest rates which would encourage borrowing and spending, increasing consumption and investment. This would shift aggregate demand to the right.

Which of the Following Shifts Aggregate Demand to the Right