Which of the following would shift the aggregate demand curve to the left?
A)An increase in the money supply
B)A cut in federal income taxes
C)An increase in money demand
D)An increase in the price level

Question

Quizplus · Accepted Answer

An increase in money demand typically leads to higher interest rates, which can decrease investment and consumption, thus shifting the aggregate demand curve to the left.

Which of the Following Would Shift the Aggregate Demand Curve