Expansionary monetary policy makes the aggregate demand curve:
A) shift to the left.
B) become flatter.
C) become steeper.
D) shift to the right.
E) stay static.

Question

Quizplus · Accepted Answer

Expansionary monetary policy involves increasing the money supply and lowering interest rates, which stimulates spending and investment. This leads to an increase in aggregate demand, shifting the AD curve to the right.

Expansionary Monetary Policy Makes the Aggregate Demand Curve