If the Government Increases Taxes,which of the Following Will Occur

Multiple Choice

If the government increases taxes,which of the following will occur in the short run?

A) An increase in GDP,an increase in the price level,an increase in money demand and an increase in the interest rate.
B) An increase in GDP,an increase in the price level,a decrease in money demand and an increase in the interest rate.
C) An increase in GDP,a decrease in the price level,an increase in money demand and an increase in the interest rate.
D) A decrease in GDP,a decrease in the price level,a decrease in money demand and a decrease in the interest rate.
E) A decrease in GDP,an increase in the price level,an increase in money demand and a decrease in the interest rate.