If the Quantity of Money Increases, the

question 370

Multiple Choice

If the quantity of money increases, the

• A) price level rises and the AD curve does not shift.
• B) AD curve shifts leftward and aggregate demand decreases.
• C) AD curve does not shift and there is a movement upward along the curve.
• D) AD curve shifts rightward and aggregate demand increases.

---

Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Variable Cost

Costs that vary directly with the level of production output or volume, such as materials and labor expenses directly involved in product manufacturing.

Volume of Business

The amount of transactions or operations conducted within a specified period by a company, indicating its level of activity or throughput.

Attractive Location

A place deemed desirable due to its advantageous or appealing characteristics, often used in the context of real estate or retail.