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    Macroeconomics Study Set 39
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    Exam 12: Aggregate Demand Ii: Applying the Is-Lm Model
  5. Question
    A Change in Money Supply Shifts the LM Curve Downward
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A Change in Money Supply Shifts the LM Curve Downward

Question 35

Question 35

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A change in money supply shifts the LM curve downward. Explain why.

Correct Answer:

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An increase in money supply (M) leads to...

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