In the Short Run, an Increase in the Money Supply

question 8

Multiple Choice

In the short run, an increase in the money supply causes interest rates and aggregate demand to do what?

• 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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