Which of the following results in the aggregate demand curve shifting rightward year after year?
A) a one-time tax cut
B) a one-time increase in government expenditures on goods and services
C) inflation
D) growth in the quantity of money

Question

Quizplus · Accepted Answer

Growth in the quantity of money typically results in an increase in spending and investment, which in turn causes the aggregate demand curve to shift rightward year after year. This is because as the money supply increases, it lowers interest rates, making borrowing cheaper for consumers and businesses, thereby stimulating economic activity.

Which of the Following Results in the Aggregate Demand Curve