An increase in the real money stock shifts theGroup of answer choicesIS curve to the rightIS curve to the leftLM curve to the rightLM curve to the left
Question
Solution 1
An increase in the real money stock shifts the LM curve to the right.
Here's why:
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The LM curve represents the relationship between interest rates and the level of income that equates the demand for money with the supply of money.
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When the real money stock increases, it means there is more Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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