What happens to the position of the LM curve if the Bank of Canada decides that it
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What happens to the position of the LM curve if the Bank of Canada decides that it will decrease the money supply to fight inflation and if, at the same time, the demand for money falls?
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If the Bank of Canada decreases the money supply the LM curve will shift inwards This is because a d...View the full answer
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Related Book For 
The Economics Of Money Banking And Financial Markets
ISBN: 9780321584717
4th Canadian Edition
Authors: Frederic S. Mishkin, Apostolos Serletis
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