According to liquidity-preference theory,when would the money-supply curve shift right?
A) if government spending increased
B) only if the Bank of Canada chose to increase the money supply
C) if the interest rate increased
D) if the price level fell or the interest rate decreased

Question

Quizplus · Accepted Answer

The money-supply curve shifts right when the central bank, such as the Bank of Canada, decides to increase the money supply.

According to Liquidity-Preference Theory,when Would the Money-Supply Curve Shift Right