An increase in the money supply will cause
A) the IS curve to shift to the right.
B) the IS curve to shift to the left.
C) the LM curve to shift to the right.
D) the LM curve to shift to the left.

Multiple Choice

Related questions

Q 86

At any point along the LM curve
A) the quantity of money demanded equals the quantity of money supplied.
B) the economy must be in general equilibrium.
C) the nominal interest rate must equal the real interest rate.
D) saving must equal investment.

Q 88

A reduction in the money supply will result in
A) a lower interest rate and more negative output gap.
B) a higher interest rate and more positive output gap.
C) a lower interest rate and more positive output gap.
D) a higher interest rates and more negative output gap.