An increase in the effective tax rate on capital would cause the IS curve to ________ and the LM curve to ________.
A. shift up and to the right; shift up and to the left
B. shift up and to the right; be unchanged
C. shift down and to the left; be unchanged
D. shift down and to the left; shift up and to the left
Answer: C
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Answer the following statement true (T) or false (F)
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