25 (10 points) The economy in question is a closed economy and can be described by the IS-LM model. Different proposals have been submitted to the government on how fiscal policy should be conducted and these proposals are: Proposal 1: Use fiscal policy to target real interest rate Proposal 2: Use fiscal policy to target real output Which of the above proposal(s) would minimize short-run fluctuations in investment if there were a reduction in autonomous consumption? Explain and support your answer by ONE IS- LM diagram (only the first diagram will be graded)