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In the IS-LM model, what causes the LM curve to shift to the right?
  • a)
    Decrease in money supply
  • b)
    Increase in money demand
  • c)
    Increase in interest rates
  • d)
    Decrease in income level
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
In the IS-LM model, what causes the LM curve to shift to the right?a)D...
An increase in money demand shifts the LM curve to the left, as it leads to higher interest rates for a given level of income.
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In the IS-LM model, what causes the LM curve to shift to the right?a)Decrease in money supplyb)Increase in money demandc)Increase in interest ratesd)Decrease in income levelCorrect answer is option 'B'. Can you explain this answer?
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