Conclusions

The position of the LM curve:

The position of the LM curve
depends on (i) the money supply in the system; (ii) the autonomous component of the demand for real money balance; and (iii) the price level).

Conclusions:
An increase in Ms (no change in P) increases the supply of real money balance and shifts the LM curve right. Reason: at the same income level, equilibrium in the money market is restored at a
lower interest rate. Vice versa, a decrease in MS (no change in P) decreases the supply of real money balance and shifts the LM left.

A higher Mdo (i.e. an increase in the amount of money demanded for given levels of interest rate and income e.g. if very unsettled economic conditions increases the probability of firms going
bankrupt and hence the default risk on bonds, the demand for money might increase) shifts the LM to the left and vice versa.

A decrease in price (no change in Ms) increases the supply of real money balance and shifts the LM curve down. On the other hand, an increase in P ( no change in Ms) reduces the supply of real money balance and shifts the LM curve up.