Question: 7. Watch the video , and then answer the question below. In response to the question about Italy, it is noted that 2012 will be

7. Watch the video , and then answer the question below. In response to the question about Italy, it is noted that "2012 will be a very difficult year" because of fiscal consolidation. Based on your understanding of the IS-LM model, this fiscal consolidation would be best represented by which of the following for Italy? O A. a rightward shift in the IS curve O B. an increase in the policy rate O C. a leftward shift in the IS curve O D. a reduction in the policy rate 1: http://https://mediaplayer.pearsoncmg.com/assets/jp4LN9sDjR2Q_eQkzNzkg22fqMCZH24m

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