An increase in the real money supply shifts the LM curve to the right.

Name: An increase in the real money supply shifts the LM curve to the right.
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Question

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An increase in the real money supply, holding everything else constant, reduces interest rates for any given level of income, leading to an outward (rightward) shift of the LM curve in the IS-LM model. This reflects the increased availability of money relative to the demand for it, lowering the equilibrium interest rate at each level of income.

An Increase in the Real Money Supply Shifts the LM