Figure 13-3

-In Figure 13-3 above,suppose that the Fed maintains a fixed real money supply and that commodity demand is also fixed.The range of shifts in the LM curve,LM₁ to LM₂ can then only be explained by

Question

Figure 13-3
 
-In Figure 13-3 above,suppose that the Fed maintains a fixed real money supply and that commodity demand is also fixed.The range of shifts in the LM curve,LM₁ to LM₂ can then only be explained by

Quizplus · Accepted Answer

The LM curve shifts when there is a change in the demand for money or a change in the velocity of money.

Figure 13-3 -In Figure 13-3 Above,suppose That the Fed Maintains a Fixed