An increase in the money supply will affect aggregate demand

A. only if the increase in the money supply causes interest rates to rise.
B. if the increase in the money supply causes interest rates to fall and/or causes people to buy more goods and services.
C. only if the increase in the money supply causes people to buy less goods and services.
D. only if the increase in the money supply causes people to increase their saving.


Answer: B

Economics

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