Multiple Choice
Suppose individuals now believe that there will be a future tax cut.This reduction in expected future taxes will cause which of the following to occur in the current period?
A) the LM curve to shift down
B) the LM curve to shift up
C) the IS curve to shift rightward
D) the IS curve to shift leftward
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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