Assume a closed economy. Suppose that in order to better balance the Federal budget, Congress decides to decrease spending on the construction of new roads, but keeps taxes the same. According to the IS/LM model (with xed prices and ination expectations), how does this affect (i) the real interest rate. (ii) real GDP, and (iii) real investment? Q a. The real interest rate decreases, real GDP decreases, real investment decreases. O b. The real interest rate increases, real GDP increases, real investment decreases. O c. The real interest rate increases, real GDP increases, real investment increases. @ d. The real interest rate decreases, real GDP decreases, real investment increases. Clear my choice