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:
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.
When the real money stock increases, it means there is more Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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