Changes in monetary policy shift the:
A) LM curve.
B) planned spending curve.
C) money demand curve.
D) IS curve.

Name: Changes in monetary policy shift the: A) LM curve. B) planned spending curve. C) money demand curve. D) IS curve.
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Question

Quizplus · Accepted Answer

Changes in monetary policy, such as altering the money supply or interest rates, directly affect the LM curve, which represents the relationship between the interest rate and the level of income that equates the money supply with money demand.

Changes in Monetary Policy Shift The