An increase in the money supply would cause the IS curve to O shift up and to the right as the excess supply of money ca
Posted: Sun Jul 03, 2022 6:57 am
An increase in the money supply would cause the IS curve to O shift up and to the right as the excess supply of money causes interest rates to fall, resulting in an increase in the aggregate demand for consumption and investment. O shift down and to the left as the excess supply of money causes prices to rise, decreasing the aggregate demand for consumption and investment. O shift down and to the right as the excess supply of money causes interest rates to fall, resulting in an increase in the aggregate demand for consumption and investment. O remain unchanged since changes to the money supply is represented by movements along the IS curve as the LM curve shifts.