A rightward shift in the money supply curve is likely to produce a rightward shift in the money demand curve.

Question

Quizplus · Accepted Answer

A rightward shift in the money supply curve would lower the interest rate, leading to an increase in investment and consumption spending, which would shift the AD curve to the right. However, this increase in output and income would raise the demand for money, leading to a leftward shift in the money demand curve.

A Rightward Shift in the Money Supply Curve Is Likely