When the Fed Decreases Money Supply,the LM Curve Shifts

question 41

Multiple Choice

When the Fed decreases money supply,the LM curve shifts:

• A) to the left, causing domestic interest rate to rise.
• B) to the left, causing domestic interest rate to fall.
• C) to the right, causing domestic interest rate to rise.
• D) to the right, causing domestic interest rate to fall.

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