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The LM curve can shift to the right if there is an increase in the supply of money or a fall in the price level. In which case is this movement along the aggregate demand curve, and in which case is this a shift of the aggregate demand curve? Explain.
Interest Rates
The cost of borrowing money, typically expressed as a percentage of the amount loaned, paid to the lender at regular intervals for the use of their money.
Bond Prices
The market value of a bond, which can fluctuate based on interest rates, the bond’s credit quality, and other factors.
Opportunity Cost
Cost associated with opportunities forgone when a firm’s resources are not put to their best alternative use.
Projected Net Present Value
An estimation of the present value of an investment's future net cash flows minus the initial investment cost.
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