An increase in the quantity of money ________ aggregate demand and ________.
A)increases;shifts the aggregate demand curve rightward
B)increases;shifts the aggregate demand curve leftward
C)decreases;shifts the aggregate demand curve rightward
D)decreases;shifts the aggregate demand curve leftward
E)increases;rotates the aggregate demand curve so it is steeper

Question

Quizplus · Accepted Answer

An increase in the quantity of money will increase aggregate demand because it increases consumer and investment spending. This will shift the aggregate demand curve rightward.

An Increase in the Quantity of Money ________ Aggregate Demand