Suppose There Is an Increase in Expected Future Taxes

question 17

Multiple Choice

Suppose there is an increase in expected future taxes. This will cause which of the following to occur?

• A) The IS curve to shift left in the current period.
• B) The IS curve to shift right in the current period.
• C) The LM curve to shift up in the current period.
• D) The LM curve to shift down in the current period.
• E) Both the IS and LM curves shift left in the current period.

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Definitions:

Bao

A type of steamed, filled bun or bread-like item in various Chinese cuisines, as well as a name for filled dumplings in Tibetan cuisine.

Willing to Pay More

The readiness of a consumer to spend a higher amount of money for a product or service, usually due to perceived value, quality, or brand loyalty.

Online

Relating to, using, or involving the internet or an electronic network.

Groceries

Items of food or household supplies sold by a grocer, including perishables and non-perishables, typically for personal or household consumption.