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:

Performance-Based Stock Option Plan

A compensation scheme where employees are granted options to purchase company stock based on meeting specific performance criteria, aligning their interests with shareholders.

Annual Average Increase

The yearly mean growth rate of an economic or financial metric, often calculated to understand the trend over a period.

Compensation Expense

Compensation expense refers to the total cost that a company recognizes for paying employees, including wages, salaries, and bonuses.

Stock Appreciation Rights

A type of employee compensation linked to the performance of the company stock, allowing employees to benefit from the stock's price increase.