The President of Mexico believes that the country's public debt is too high and has instructed the government to cut fiscal expenditure by 10% this year. Meanwhile, the Central Bank of Mexico has kept its policy interest rate at 4% since last year and plans to maintain that policy in 2021. If the government proceeds with the expenditure cut while the central bank is keeping the interest rate fixed,

a.the IS will shift to the right and the LM curve will shift downward.

b.the IS curve will shift to the left and the LM curve will shift upward.

c.the LM curve will shift downward and the IS curve will remain unchanged.

d.the IS curve will shift to the right and LM curve will remain unchanged.

e.the IS and LM curve will both remain unchanged.