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When there is an increase in the autonomous money supply, ceteris paribus, LM shifts:

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Question:

When there is an increase in the autonomous money supply, ceteris paribus, LM shifts:

A.

leftward

B.

rightward

C.

no shift

D.

none

Answer» b. rightward

Note: The above multiple-choice question is for all general and Competitive Exams in India.