If the Government Announces a Cut in the Capital Gains

Multiple Choice

If the government announces a cut in the capital gains tax and it is expected that investment spending will increase as a result,which of the following are also likely?

A) An upward shift in the aggregate expenditure line,a rightward shift of the money demand curve,and a leftward shift of the aggregate demand curve
B) A downward shift in the aggregate expenditure line,a rightward shift of the money demand curve,and a rightward shift of the aggregate demand curve
C) An upward shift in the aggregate expenditure line,a leftward shift of the money demand curve,and a rightward shift of the aggregate demand curve
D) A downward shift in the aggregate expenditure line,a leftward shift of the money demand curve,and a leftward shift of the aggregate demand curve
E) An upward shift in the aggregate expenditure line,a rightward shift of the money demand curve,and a rightward shift of the aggregate demand curve.