A decrease in government purchases

(a).shifts theIScurve up and to the right, leading to a higher interest rate and an appreciation of the exchange rate.

(b).shifts theIScurve down and to the left, leading to a lower interest rate and a depreciation of the exchange rate.

(c).shifts theLMcurve left, leading to a lower interest rate and a depreciation of the exchange rate.

(d).shifts theLMcurve right, leading to a lower interest rate and a depreciation of the exchange rate.