An increase in the money supply shifts the aggregate-supply curve right.

Name: An increase in the money supply shifts the aggregate-supply curve right.
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Question

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An increase in the money supply would shift the aggregate-demand curve to the right, not the aggregate-supply curve. An increase in the money supply would lead to lower interest rates, higher consumption and investment spending, and a weaker currency, all of which would increase demand for goods and services in the economy.

An Increase in the Money Supply Shifts the Aggregate-Supply Curve