Question
Macroeconomics Question on Business cycles and economic models
For a positively sloped LM curve, which of the following statements is CORRECT?
A
A decrease in the price level will shift the LM curve to the left
B
A lower nominal money supply will shift the LM curve to the right
C
An increase in the price level will shift the LM curve to the right
D
A higher nominal money supply will shift the LM curve to the right
Answer
A higher nominal money supply will shift the LM curve to the right
Explanation
Solution
The correct option is (D): A higher nominal money supply will shift the LM curve to the right