Question

Discuss the factors which are responsible for leftward and rightward shift of is and lm curve

Answer 1

Answer:

Step-by-step explanation:

The LM curve, the equilibrium points in the market for money, shifts for two reasons: changes in money demand and changes in the money supply. If the money supply increases (decreases), ceteris paribus, the interest rate is lower (higher) at each level of Y, or in other words, the LM curve shifts right (left).