问题如下：
When nominal money supply increases, it would cause the shift of :
选项：
A.IS curve
B.Neither IS nor LM
C.LM curve
解释：
C is correct.
Given the money supply, an increase in income must be accompanied by an decrease in the interest rate in order to increase the income and keep the demand for money balances equal to the supply. This relationship, which economists refer to as the LM curve. When money supply increases , LM curve will shift right.
考点：LM曲线
解析：名义货币供给MS以及价格水平P是影响LM曲线平移的两大因素，当货币供给MS增加时，利率r会随之降低，这表现为LM曲线向右平移。
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