An increase in autonomous consumption shifts the LM curve to the right.

Name: An increase in autonomous consumption shifts the LM curve to the right.
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Quizplus · Accepted Answer

An increase in autonomous consumption affects the IS curve by shifting it to the right, not the LM curve. The LM curve represents the relationship between liquidity preference and money supply in the economy, which is not directly affected by changes in autonomous consumption.

An Increase in Autonomous Consumption Shifts the LM Curve to the Right