Other things held constant,an increase in the velocity of money will cause the aggregate demand curve to:
A) shift inward.
B) shift outward.
C) not shift at all.
D) shift randomly.

Question

Quizplus · Accepted Answer

An increase in the velocity of money means that each unit of currency changes hands more frequently, leading to more transactions and an increase in spending. This will cause an outward shift in the aggregate demand curve as households and firms demand more goods and services.

Other Things Held Constant,an Increase in the Velocity of Money