If People's Expectations About Future Income Improve So They Think

Multiple Choice

If people's expectations about future income improve so they think their future income will be higher than previously believed,then the AD curve

A) will not change until income actually rises.
B) will shift leftward because people will spend less now.
C) will shift rightward because people will increase spending now.
D) and the AS curve will both shift leftward because people will increase their saving.
E) will not shift,but potential GDP will increase.