When the quantity of money in the economy increases, the
A) long- run aggregate supply curve shifts leftward.
B) wealth effect is no longer operable.
C) aggregate demand curve shifts rightward.
D) aggregate demand curve does not shift but the economy moves along it.

Question

Quizplus · Accepted Answer

When the quantity of money in the economy increases, consumers and businesses have more money to spend, which increases the demand for goods and services. As a result, the aggregate demand curve shifts rightward.

When the Quantity of Money in the Economy Increases, the