Which of the following will cause the aggregate demand curve to shift to the right?
A)The discovery of new oil fields.
B)A decrease in the money supply.
C)A decrease in the interest rate.
D)An increase in the exchange rate.
E)A decrease in the incomes of our major trading partners.

Question

Quizplus · Accepted Answer

A decrease in the interest rate makes borrowing cheaper, encouraging investment and consumption, which increases aggregate demand, shifting the curve to the right.

Which of the Following Will Cause the Aggregate Demand Curve