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In the context of the IS LM model, assume an economy in which economic authorities they carry out a contractive fiscal policy

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In the context of the IS LM model, assume an economy in which economic authorities they carry out a contractive fiscal policy. In view of this policy, the following is observed: . A decline in GDP. A decrease in investment. What can explain the behavior of these variables? O Faced with the contractionary fiscal policy, the central bank simultaneously made a purchase of bonds in open market. 0 The central bank does not have an interest rate target. OR All options. O The economy is in the liquidity trap.