Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![An increase in money supply will
shift the LM curve down.
O shift the IS curve up.
O shift the IS curve down.
shift the LM curve up.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1888cd62-58d1-4693-a553-a1befd82fa7a%2Ff13f1228-7083-4d40-b243-04bd868917c5%2Fjdixz2h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An increase in money supply will
shift the LM curve down.
O shift the IS curve up.
O shift the IS curve down.
shift the LM curve up.
![The LM curve is
upward sloping because an increase in output increases equilibrium interest rate.
upward sloping because an increase in output decreases equilibrium interest
rate.
downward sloping because an increase in output decreases equilibrium interest
rate.
downward sloping because an increase in output increases equilibrium interest
rate.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1888cd62-58d1-4693-a553-a1befd82fa7a%2Ff13f1228-7083-4d40-b243-04bd868917c5%2Fyyait6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The LM curve is
upward sloping because an increase in output increases equilibrium interest rate.
upward sloping because an increase in output decreases equilibrium interest
rate.
downward sloping because an increase in output decreases equilibrium interest
rate.
downward sloping because an increase in output increases equilibrium interest
rate.
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