An increase in the money ________ shifts the LM curve to the ________,causing the interest rate to fall and output to rise,everything else held constant.
A)demand;right
B)demand;left
C)supply;right
D)supply;left

Question

Quizplus · Accepted Answer

An increase in money supply would shift the LM curve to the right, since there would be more money available in the market, causing the interest rate to fall and output to rise, everything else held constant. Therefore, the correct answer is C - supply; right.

An Increase in the Money ________ Shifts the LM Curve