Question: Consider the IS-LM model. The government wants to do fiscal policy either by raising government spending or lowering taxes. What will be the difference between

Consider the IS-LM model. The government wants to do fiscal policy either by raising government spending or lowering taxes. What will be the difference between these two approaches?

A. One will shift IS: the other will shift LM

B. One will raise consumption and the other will raise economic investment.

C. One is direct and the other is indirect.

D. One will shift IS rightward: the other will shift IS leftward.

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