Two identical countries, Alpha and Beta, can be described by theIS-LMmodel in the short run. The governments of both countries cut taxes by the same amount. The Central Bank of Alpha follows a policy of holding a constant money supply. The Central Bank of Beta follows a policy of holding a constant interest rate.

1. What willl happen to the interest rate incountry Alpha?Please explain.
2. Which country will show a crowding out of investment?Why?Please explain.