Which of the Following Will Cause the LM Curve to Shift

question 24

Multiple Choice

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

• A)an increase in the expected future interest rate
• B)an increase in current income
• C)an increase in expected future taxes
• D)all of the above
• E) none of the above

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Definitions:

Sales

Revenue generated from the sale of goods or services.

Total Assets

The sum of all current and long-term assets owned by a company, reflected on the balance sheet.

Net Sales

The revenue from goods or services sold by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

ROE

Return on Equity, a profitability measure that calculates the ability of a company to generate profits from its shareholders' equity.