You have just read that the Bank of Canada has increased the money supply to avoid a recession.For a given price level,you would expect the LM curve to
A)shift up as the real money supply falls.
B)shift up as the real money supply rises.
C)shift down as the real money supply falls.
D)shift down as the real money supply rises.

Question

Quizplus · Accepted Answer

An increase in the money supply, for a given price level, increases the real money supply, causing the LM curve to shift down.

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