1.An increase in the future expected nominal interest rate will cause:

an upward shift of the LM curve.

the LM curve to become steeper.

the LM curve to become flatter.

no change in the LM curve.

2.Assume that shares of stock sell at their fundamental value. In this case, a stock's price should be equal to which of the following?

the present value of coupon payments

the present value of expected dividends

the sum of coupon payments

the sum of expected dividends