Economy, asked by Aniket7979, 1 year ago

Why unitary supply elasticy curve shoots from origin?

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Answered by Anonymous
0
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).
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