Answer:
b. increases the money supply
Explanation:
When the money supply is increased by the federal reserve the aggregate demand curve will shift to the right, the reason for this is that when the money supply is increased people are more likely to consume more goods and services as there is more money available in the economy. Also one of the ways to increase the money supply is by lowering interest rates and lower interest rate encourage higher investment which will also curve the aggregate demand curve to the right.
