Suppose There Is an Increase in Expected Future Taxes

question 15

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

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Definitions:

Mens Rea

Wrongful mental state or intent. A wrongful mental state is a requirement for criminal liability. What constitutes a wrongful mental state varies according to the nature of the crime.

Arson

The criminal act of deliberately setting fire to property, often with the intent to cause damage or harm.

Misdemeanor

A type of criminal offense that is less serious than a felony and typically carries a lighter penalty, such as a fine or short jail time.

Disturbing the Peace

An offense involving acts that disrupt public order or tranquility, such as excessive noise or threatening behavior.