If the price level decreases,everything else held constant,the ________ curve shifts to the ________.
A)IS; right
B)IS; left
C)LM; left
D)LM; right

Question

Quizplus · Accepted Answer

When the price level decreases, the real money supply increases, which shifts the LM curve to the right. The IS curve would remain unchanged because it represents the equilibrium in the goods market which is unaffected by changes in the price level.

If the Price Level Decreases,everything Else Held Constant,the ________ Curve