An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve

Business

1 answer:

gladu [14]2 years ago

3 0

Answer: The correct answer is "C) LM: shifts to the right".

Explanation: An increase in the money supply shifts the <u>LM</u> curve to the right, and the aggregate demand curve <u>shifts to the right.</u>

As the supply of money increases, the LM curve shifts to the right, establishing a new equilibrium point in which production is going to be higher, thus increasing aggregate demand.

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