Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

What happens to the interest rate and the aggregate demand (AD) curve when the money supply rises?

  • Ainterest rate falls; AD curve shifts left
  • Binterest rate rises; AD curve shifts left
  • Cinterest rate falls; AD curve shifts right
  • Dinterest rate rises; AD curve shifts right

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