An Increase in the Effective Tax Rate on Capital Would

Multiple Choice

An increase in the effective tax rate on capital would cause the IS curve to ________ and the LM curve to ________.

A) shift down and to the left; be unchanged
B) shift down and to the left; shift up and to the left
C) shift up and to the right; be unchanged
D) shift up and to the right; shift up and to the left