Question:
For a positively sloped LM curve, which of the following statements is CORRECT?
For a positively sloped LM curve, which of the following statements is CORRECT?
Updated On: Oct 1, 2024
- A decrease in the price level will shift the LM curve to the left
- A lower nominal money supply will shift the LM curve to the right
- An increase in the price level will shift the LM curve to the right
- A higher nominal money supply will shift the LM curve to the right
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The Correct Option is D
Solution and Explanation
The correct option is (D): A higher nominal money supply will shift the LM curve to the right
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