J. .r fhe policy makers ofla closed economy are seeking proposals on how the scal policy should be conducted in the short run. Currently, there are two proposals have been submitted, and they are: Proposal 1: Use the policy to target level of real interest E Proposal 2: Use the policy to target price level (in the long run) Suppose the economy experiences a downward adjustment in the stock market and house prices, which affects retail sales. You are asked to do the followings: - Evaluate the effect of this change on the short-run equilibrium level of investment under these two different proposals. . Rank the change in investment in descending order in the above proposals. Explain and support your answer with ONE IS-LM diagram (only the rst diagram will be graded). Note: In the initial long-run equilibrium, the government has achieved whatever target they set