Explain briefly how a change to the following MS MD or P (ceteris paribus) would shift the LM function to the right.
Explain briefly how a change to the following MS MD or P (ceteris paribus) would shift the LM function to the right. Include in your discussion whether the variable would have to increase or decrease to cause the rightward LM shift. Discuss which of these the FED exercises control over.a. MS.
b. MD (money demand).
c. P (price index).Explain briefly how a change to the following MS MD or P (ceteris paribus) would shift the LM function to the right. Include in your discussion whether the variable would have to increase or decrease to cause the rightward LM shift. Discuss which of these the FED exercises control over.a. MS.
b. MD (money demand).
c. P (price index).
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