During 2005, the Fed was tightening monetary policy in an attempt to slow the economy, The Congress passes a substantial cut in the individual income tax at the same time. As a result of these policy changes The rate of the interest was expected to increase and the effect on GDP was likely to be ambiguous Paranoia, the largest country in central Antarctica, receives word from an imminent penguin attack. The news causes expectations about the future to be shaken. As a consequence, there is a sharp decline in investment spending plans a. What will be the effects of such an event on the economy of Paranoia assuming no response on the part of the central bank or the Treasury, so that the money supply, taxes, and government spending remain constant