Q
Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?
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A
A. The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right
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B
B. The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left
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C
C. The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right
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D
D. The money supply shifts right, prices rise, demand curve shifts left
Correct Answer:
C. C. The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right
