The AD curve will shift to the
A)right if the price level falls and the quantity of money is held constant.
B)right if the price level rises and the quantity of money is held constant.
C)right if the price level is held constant and the quantity of money rises.
D)right if the price level is held constant and the quantity of money falls.

Question

Quizplus · Accepted Answer

The AD (Aggregate Demand) curve will shift to the right if the quantity of money in the economy increases while the price level is held constant. This is because an increase in the money supply typically leads to higher spending and investment, thus increasing aggregate demand.

The AD Curve Will Shift to the