A monetary stimulus is designed to shift the
A)AS curve to the right.
B)AS curve to the left.
C)AD curve to the right.

Question

Quizplus · Accepted Answer

A monetary stimulus involves increasing the money supply and reducing interest rates, which can encourage consumer and business spending. This shift in spending increases the overall demand in the economy, which shifts the AD curve to the right. The AS curve remains unchanged as the monetary stimulus does not directly impact production or supply. Therefore, the best choice is C: AD curve to the right.

A Monetary Stimulus Is Designed to Shift the