10. Shifts of the LM curve
Interacting with graphs to learn more about shifting the LM curve
The LM curve represents the combinations of income and the interest rate that lead to equilibrium in the money market. As with any graph drawn by economists, many variables have been held constant including the money supply. But, we know the Federal Reserve changes the money supply as part of monetary policy. Let's see how changes in monetary policy affect the position of the LM curve.
Objectives
Click on the 'Exploration' link above to continue.