In the context of the IS LM model, suppose an economy in which only autonomous taxes exist

In the context of the IS LM model, suppose an economy in which only autonomous taxes exist.

The economic authorities are separately evaluating the effect on GDP in the short term of a decrease in the money supply and a reduction in government spending.

Please indicate the correct statement.

A) Assuming that both policies achieve the same result on GDP, in both cases government saving remains constant.

B) Monetary policy will cause a decrease in GDP and an increase in the interest rate, which will cause investment to decline and public finances to deteriorate.

C) Fiscal policy will cause a decrease in private saving and an increase in the demand for money and consumption.

D) Fiscal policy will cause a decrease in GDP and in the interest rate, therefore it will have an ambiguous effect on investment and an improvement in public finances.