Question: All other things remaining equal, which of the following changes would cause the AD curve to shift to the right? To the left? Make it

All other things remaining equal, which of the following changes would cause the AD curve to shift to the right? To the left? Make it flatter? Make it steeper? Leave it unchanged (that is, cause a movement along the AD curve)?
(a) An increase in the nominal money supply
(b) An increase in foreign income
(c) An increase in the income tax rate
(d) An increase in the marginal propensity to consume
(e) A decrease in the responsiveness of investment to changes in the interest rate
(f) An increase in the price level
(g) An increase in government spending
(h) A decrease in the exchange rate
(i) A boom in housing prices
(j) A decline in the availability of credit

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a Shifts the LM curve to the right therefore AD curve shifts to the right b An increase in foreign income shifts the aggregate demand to the right The ... View full answer

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