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What factor can cause a shift in the LM curve in the IS-LM model?
  • a)
    Changes in investment demand.
  • b)
    Changes in government expenditure.
  • c)
    Changes in the money supply.
  • d)
    Changes in consumption demand.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What factor can cause a shift in the LM curve in the IS-LM model?a)Cha...
A change in the money supply can lead to a shift in the LM curve. An increase in the money supply shifts the LM curve to the right, while a decrease shifts it to the left.
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What factor can cause a shift in the LM curve in the IS-LM model?a)Changes in investment demand.b)Changes in government expenditure.c)Changes in the money supply.d)Changes in consumption demand.Correct answer is option 'C'. Can you explain this answer?
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