Which situation would induce a shift of the aggregate demand to the right?
A) price level and government expenditures decreased
B) price level decreased, and the government instituted an investment tax credit
C) stock prices and the money supply increased
D) bank rate increased, and the dollar appreciated

Question

Quizplus · Accepted Answer

An increase in stock prices can boost consumer wealth, leading to higher spending. Similarly, an increase in the money supply can lower interest rates, encouraging more investment and consumption. Both factors can lead to a rightward shift in aggregate demand.

Which Situation Would Induce a Shift of the Aggregate Demand