MCQOPTIONS
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| 1. |
Which of the following best describes how an increase in the money supply shift the aggregate demand curve ? |
| A. | The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right |
| B. | The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left |
| C. | The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right |
| D. | The money supply shifts right, prices rise, demand curve shifts left |
| Answer» D. The money supply shifts right, prices rise, demand curve shifts left | |