An Increase in the Quantity of Money Shifts the Aggregate

question 16

True/False

An increase in the quantity of money shifts the aggregate demand curve rightward.

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Definitions:

Capital Stock

The total amount of physical goods that are used for production of other goods and services.

Economy

The large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Increase

An upward change or growth in a quantity or value.

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.