Suppose There Is a Decrease in Expected Future Taxes

Multiple Choice

Suppose there is a decrease in expected future taxes. This will cause which of the following to occur?

A) The IS curve to shift left in the current period.
B) The IS curve to shift right in the current period.
C) The LM curve to shift up in the current period.
D) The LM curve to shift down in the current period.
E) Both the IS and LM curves to shift right in the current period.