Question

1) When investment demand shifts to the left, _____.

Multiple Choice

expansionary monetary policy will shift aggregate demand to the left by less than before.

expansionary monetary policy will shift the aggregate supply to the right by less than before.

expansionary monetary policy will shift aggregate demand to the right by less than before.

expansionary monetary policy will shift the aggregate supply to the left by less than before.

Answer 1

expansionary monetary policy will shift aggregate demand to the right by less than before.

Explanation: The aggregate demand would not shift as much because of the fall in aggregate demand.