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Economics
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Economics
Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?
A
The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right
Option A
B
The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left
Option B
The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right
Correct answer
D
The money supply shifts right, prices rise, demand curve shifts left
Option D
Correct answer: C
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