IS-LM Doubt

[Homer Simpson]

The economy is initially at equilibrium. The central bank decides to decrease the money supply. It also affects the expectations of the future interest rates in the same direction. What happens to the position of the IS and LM curves?

[manisha sachdeva]

as money supply has been decreased.
then lm curve shifts upwards resulting in higher interest rates and lower output.
nothing will happen to is curve

[kangkan]

Hi Tsuki..it will depend on wether the ecoomy is open or closed...