Which of the Following Will Cause the LM Curve to Shift

question 50

Multiple Choice

Which of the following will cause the LM curve to shift down?

• A) A decrease in the expected future interest rate.
• B) A decrease in the price level.
• C) A decrease in expected future taxes.
• D) A decrease in current income.
• E) A decrease in expected future income.

---

Definitions:

Structural Unemployment

Unemployment resulting from industrial restructuring, technological changes, or other long-term factors, affecting the structure of the labor market.

Technology Changes

Refers to the ongoing advancements and innovations in technology that affect various aspects of society, including how people work, communicate, and consume.

Product Demand

The desire and ability of consumers to purchase a particular good or service at various prices during a specific time period.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the increase of prices over time.