• 2022-06-11
    Which of the following will occur in an IS-LM model, if the government decides to raise the income tax rate?
    A: the IS-curve will become flatter and shift to the right
    B: the IS-curve will become steeper and shift to the left
    C: the IS-curve will shift parallel to the left
    D: the LM-curve will become steeper and shift to the right
    E: the LM-curve will shift parallel to the right