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A) an Increase in the Money Supply from $80 to $100

Question 293

Multiple Choice

  A)  an increase in the money supply from $80 to $100 will shift the aggregate demand curve rightward by $50 billion at each price level. B)  an increase in the money supply from $80 to $100 will shift the aggregate demand curve leftward by $40 billion at each price level. C)  a decrease in the interest rate from 9 percent to 6 percent will shift the aggregate demand curve leftward by $100 billion at each price level. D)  a decrease in the interest rate from 6 percent to 3 percent will shift the aggregate demand curve leftward by $50 billion at each price level.


A) an increase in the money supply from $80 to $100 will shift the aggregate demand curve rightward by $50 billion at each price level.
B) an increase in the money supply from $80 to $100 will shift the aggregate demand curve leftward by $40 billion at each price level.
C) a decrease in the interest rate from 9 percent to 6 percent will shift the aggregate demand curve leftward by $100 billion at each price level.
D) a decrease in the interest rate from 6 percent to 3 percent will shift the aggregate demand curve leftward by $50 billion at each price level.

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