If the quantity of money in Canada increases, which of the following events will occur?

Question

Answer

Aggregate demand decreases because it raises interest rates and makes it more difficult to get a loan.

Answer

The quantity of money has no effect on aggregate demand.

Answer

The quantity of real GDP demanded decreases.

Answer

Aggregate demand increases because the interest rate falls, which makes it easier to get a loan.

Answer

Aggregate demand decreases because the exchange rate rises, which decreases net exports.

Crowdly