In the IS curve, a cut in taxes ________.
A) causes planned expenditures and hence equilibrium output to rise when the interest rate increases
B) causes planned expenditures and hence equilibrium output to fall when the interest rate increases
C) causes the equilibrium interest rates to fall
D) all of the above
E) none of the above

Question

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The Answer of In the IS curve, a cut in taxes ________.
A) causes planned expenditures and hence equilibrium output to rise when the interest rate increases
B) causes planned expenditures and hence equilibrium output to fall when the interest rate increases
C) causes the equilibrium interest rates to fall
D) all of the above
E) none of the above

In the IS Curve, a Cut in Taxes ________