In the country of Peirce, government spending decreased while the level of private savings increased. How will these changes affect the real interest rate and interest-sensitive spending in the short run? Responses The real interest rate will increase, and interest-sensitive spending will decrease. The real interest rate will increase, and interest-sensitive spending will decrease. The real interest rate will increase, and the effect on interest-sensitive spending is indeterminate. The real interest rate will increase, and the effect on interest-sensitive spending is indeterminate. The real interest rate will decrease, and interest-sensitive spending will increase. The real interest rate will decrease, and interest-sensitive spending will increase. The real interest rate will decrease, and the effect on interest-sensitive spending is indeterminate. The real interest rate will decrease, and the effect on interest-sensitive spending is indeterminate. The effect on the real interest rate and interest-sensitive spending is indeterminate