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

Question

Quizplus · Accepted Answer

The LM curve shifts due to changes in money supply or demand, not directly from expected future interest rates, current income, or expected future taxes.

Which of the Following Will Cause the LM Curve to Shift