In the Case of "Unresponsive Expenditures," the Operation of the Pigou

Multiple Choice

In the case of "unresponsive expenditures," the operation of the Pigou effect

A) shifts the LM curve downward, raising output.
B) shifts the LM curve downward, but fails to affect output.
C) shifts the IS curve rightward, but since that curve is vertical this has no effect on output.
D) shifts the IS curve rightward, raising output.
E) steep, weakening