In the Short Run, What Effect Does an Increase in the Money

question 102

Multiple Choice

In the short run, what effect does an increase in the money supply have on interest rates and aggregate demand?

• A) It causes interest rates to increase and aggregate demand to shift right.
• B) It causes interest rates to increase and aggregate demand to shift left.
• C) It causes interest rates to decrease and aggregate demand to shift right.
• D) It causes interest rates to decrease and aggregate demand to shift left.

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