Question

    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 Correct Answer Incorrect Answer
    B A lower nominal money supply will shift the LM curve to the right Correct Answer Incorrect Answer
    C An increase in the price level will shift the LM curve to the right Correct Answer Incorrect Answer
    D A higher nominal money supply will shift the LM curve to the right Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    A higher nominal money supply will shift the LM curve to the right.

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