A Shift in the LM Curve Can Occur Because

question 52

Multiple Choice

A shift in the LM curve can occur because

• A) interest rates change so frequently.
• B) of contractions and expansions in the money supply.
• C) of the strength of the velocity of circulation.
• D) of a shift in the demand for money.

---

Definitions:

GDP

Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation).

Nominal GDP

The market value of all final goods and services produced within a country in a given period, measured using current prices without adjusting for inflation.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of the economy's size and how it's growing over time.