An increase in the nominal money supply will shift
A)AD up and raise the price level.
B)AD down and lower the price level.
C)SAS up and raise the price level.
D)SAS down and lower the price level.

Question

Quizplus · Accepted Answer

An increase in the nominal money supply will increase consumer and business demand for goods and services, leading to an increase in aggregate demand (AD). This will result in a shift in the AD curve to the right, causing an increase in both real output and the price level.

An Increase in the Nominal Money Supply Will Shift