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2- If the government decreases its spending and, at the same time, decreases tastes hf; the same amount, than according to the ISLl-I model what

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2- If the government decreases its spending and, at the same time, decreases tastes hf; the same amount, than according to the ISLl-I model what hap pens to "National Savings. output and the interest rate? Used graphs to support your answer. 3- Suppose that the economy is in equihhrium. The Fed and the scal au thority wish to cooperate in order to raise investment but keep output constant. Use the ISLl-I model to see what mix of monetary and scal policy will achieve this

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