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Which of the following will occur if there is an increase in taxes ?

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Which of the following will occur if there is an increase in taxes ?
  • AThe IS curve shifts and the economy moves along the LM curve. 
  • BThe LM curve shifts and the economy moves along the IS curve. 
  • COutput will change causing a change in money demand and a shift of the LM curve
  • DNeither the IS nor the LM curve shifts
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The IS curve shifts and the economy moves along the LM curve.