Figure 7-1 -By Referring to Figure 7-1,an Increase in the Money Stock

Multiple Choice

Figure 7-1

-By referring to Figure 7-1,an increase in the money stock

A) shifts the LM schedule to the right from LM₀ to LM₁.
B) shifts the LM schedule to the left from LM₀ to LM₂.
C) leaves the LM curve unchanged at LM₀.
D) shifts neither the IS nor the LM schedule.