An increase in the quantity of money ________ aggregate demand and ________.
A)increases;shifts the aggregate demand curve rightward
B)increases;shifts the aggregate demand curve leftward
C)decreases;shifts the aggregate demand curve rightward
D)increases;rotates the aggregate demand curve so it is steeper
E)decreases;shifts the aggregate demand curve leftward

Question

Quizplus · Accepted Answer

An increase in the quantity of money increases the overall spending in an economy, which increases aggregate demand. This shift is represented as a rightward shift on the aggregate demand curve.

An Increase in the Quantity of Money ________ Aggregate Demand