Figure 7-1 -By Referring to Figure 7-1,an Increase in the Money Stock

question 52

Multiple Choice

Figure 7-1

-By referring to Figure 7-1,an increase in the money stock

• A)shifts the LM schedule to the right from LM₀ to LM₁.
• B)shifts the LM schedule to the left from LM₀ to LM₂.
• C)leaves the LM curve unchanged at LM₀.
• D)shifts neither the IS nor the LM schedule.

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