Which of the Following Will Occur If There Is a Decrease

Multiple Choice

Which of the following will occur if there is a decrease in taxes?

A) Neither the IS nor the LM curve shifts.
B) The IS curve shifts and the economy moves along the LM curve.
C) Both the IS and LM curves shift.
D) Output will change causing a change in money demand and a shift of the LM curve.
E) The LM curve shifts and the economy moves along the IS curve.