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why does an increase in money supply , lower the interest rate and shift the LM curve down.?

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  • $\begingroup$ This is college economics , you can discuss the advanced stuff in your head buddy. Vote off ! $\endgroup$ – statisticsinquisitive Mar 2 '18 at 23:34
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In the standard LM Model money supply is a vertical line and money demand is a decreasing function (in the interest rate - money framework). An increase in the money supply curve shifts the supply curve to the right which ceteris paribus decreases the intersect with the demand curve which leads to a lower interest rate.

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