The Central Bank of Libertina Increases the Money Supply at the Same

Multiple Choice

The Central Bank of Libertina increases the money supply at the same time the Parliament of Libertina passes a new investment tax credit.Consider the effects of these policies on the Libertinian economy.The money supply increase

A) and the investment tax credit each cause aggregate demand to shift right.
B) and the investment tax credit each cause aggregate demand to shift left.
C) causes aggregate demand to right, while the investment tax credit causes aggregate demand to shift left.
D) causes aggregate demand to shift left, while the investment tax credit causes the aggregate demand curve to shift right.