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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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