Which of the Following Would Shift the LM Curve

question 20

Multiple Choice

Which of the following would shift the LM curve?

• A)an increase in the tax rate
• B)an increase in the real money supply
• C)a reduction in business confidence
• D)All of these.

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Definitions:

Data Collected

Information gathered through observation, experimentation, surveys, or other methods, which can be analyzed to gain insights or make decisions.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Fixed Costs

Costs that do not vary with production or sales levels, including rent, insurance, and salaries, which remain constant regardless of business activity levels.

Operating Income

The profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.