A decrease in the money supply causes the _____ curve to shift to the left and equilibrium output to
A) LM, fall.
B) LM, rise.
C) IS, rise
D) IS, rise.

Name: A decrease in the money supply causes the _____ curve to shift to the left and equilibrium output to A) LM, fall. B) LM, rise. C) IS, rise D) IS, rise.
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Question

Quizplus · Accepted Answer

A decrease in the money supply causes the LM curve to shift to the left, leading to a higher interest rate and lower equilibrium output in the goods and services market.

A Decrease in the Money Supply Causes the _____ Curve