Consider two economies with the following IS curves, denoted $1$ and $2$:

IS$1$: mc$051-1.$jpg

IS$2$: mc$051-2.$jpg

Given these two curves, the economies are identical except that they respond to interest rate changes differently. Suppose we assume mc$051-3.$jpg$.$ If the real interest rate in each economy falls to mc$051-4.$jpg then:

Group of answer choices

Country $1$ will move from its long$-$run equilibrium to $1$ percent below its potential and Country $2$ will move from its long$-$run equilibrium to $0\mathrm{.}5$ percent above its potential.

neither country will move away from its long$-$run equilibrium.

Country $1$ will move from $0\mathrm{.}5$ percent below its potential to its long$-$run equilibrium and Country $2$ will move from its long$-$run equilibrium to $2$ percent above its potential.

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 $0\mathrm{.}5$ percent below its potential.

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 $0\mathrm{.}5$ percent above its potential.