If the United States Cuts Its Government Budget Deficit, What

Multiple Choice

If the United States cuts its government budget deficit, what impact would there be on the IS curve?

A) It would shift right due to higher levels of total spending.
B) It would shift left due to lower levels of total spending.
C) It would shift left because of lower levels of total spending, and it would shift right if U.S. interest rates decline due to lower borrowing.
D) It would shift left because of higher nominal and real interest rates due to increased borrowing.