Which of the following would cause a nation's aggregate demand curve to shift to the right?
A) Reductions are made in government spending.
B) Global economic conditions deteriorate.
C) Higher levels of financial distress and uncertainty occur.
D) The money supply increases.

Question

Quizplus · Accepted Answer

An increase in the money supply typically lowers interest rates, making borrowing cheaper for both consumers and businesses. This encourages spending and investment, leading to an increase in aggregate demand, which is represented by a rightward shift of the aggregate demand curve.

Which of the Following Would Cause a Nation's Aggregate Demand