In the Event Consumers Expected a Tax Cut in the Future

Multiple Choice

In the event consumers expected a tax cut in the future, forward-looking consumption behavior on their part would bring about

A) a leftward shift of the IS curve as they anticipated higher future budget deficits.
B) a leftward shift of the IS curve in response to an expected decrease in government future benefits.
C) a rightward shift of the IS curve since they perceive their lifetime disposable income to have increased.
D) a rightward shift of the IS curve in response to an expected decrease in government future benefits.
E) a leftward shift of the IS curve since they perceive their lifetime disposable income to have increased.