Effects of ms and md, Explain briefly how a change to the

Effects of ms and md

Reference no: EM1369104

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).

Reference no: EM1369104

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