Consider two economies with the following IS curves, denoted 1 and 2: IS1: Yit = a - b, (R. - F) IS2: Yat = a - b2 ( R. - F) Given these two curves, the economies are identical except that they respond to interest rate changes differently. Suppose: a = 0,b1 = 0.75, b2 = 0.5, Rt = r = 2. If the real interest rate in each economy increases to R': = 4% then: Select one: O a. Country 1 will move from its long-run equilibrium to 1 percent above its potential and Country 2 will move from its long-run equilibrium to 1.5 percent above its potential. O b. none of the other answers is correct O c. Country 1 will move from its long-run equilibrium to 1.5 percent below its potential and Country 2 will move from its long-run equilibrium to 1 percent below its potential. O d. Country 1 will move from 1.5 percent below its potential to its long-run equilibrium and Country 2 will move from its long-run equilibrium to 1 percent above its potential. O e. Country 1 will move from 1.5 percent below its potential to its long-run equilibrium and Country 2 will move from its long-run equilibrium to 1 percent above its potential