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An Increase in the Money Supply

Question 3

Multiple Choice

An increase in the money supply


A) and the investment tax credit both cause aggregate demand to shift right.
B) and the investment tax credit both cause aggregate demand to shift left.
C) causes aggregate demand to shift 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 aggregate demand to shift right.

Correct Answer:

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