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You've just read that the Federal Reserve has increased the money supply to avoid a recession. For a given price level, you would expect the LM curve to:

shift up and to the left as the real money supply falls.

shift up and to the left as the real money supply rises.

shift down and to the right as the real money supply falls.

shift down and to the right as the real money supply rises.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M937955

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