A Decrease in the Money Supply Would Cause the IS

question 3

Multiple Choice

A decrease in the money supply would cause the IS curve to ________ and the LM curve to ________.

• A)shift down and to the left; be unchanged
• B)shift down and to the left; shift up and to the left
• C)be unchanged; shift up and to the left
• D)be unchanged; shift down and to the right