In the classical model of the LR closed economy, with MPC=0.8 and interest sensitivity parameter b=1000, a reduction in taxes by 100 (AT=-100) will 1. decrease national savings by 20. Il. increase equilibrium real interest rate by 2%. Select one: O A. Only I is true. O B. Only ll is true. O C. Both of the above are true. O D. None of the above is true