Classify each of the following as an example of either a spending shock or a financial shock. Determine how the macroeconomic equilibrium will change by illustrating this shift in an IS-MP graph.

a. Lenders become less risk averse and cut the risk premium they charge when making risky loans.

b. The federal government ends a tax cut for families with small children.

c. Congress passes a new tax law that decreases corporate taxes by 10%.

d. Due to signals from the Fed, businesses expect interest rates to rise in the next few weeks.

e. Electric power providers become more confident in the ability for wind farms to meet electricity demand. This leads to a boom in building and producing wind farms across the country.