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24. Along a given LM curve, what variable is held fixed? (That is, moving along a single LM curve, which of the following variables do not change?) A.) Autonomous money demand, which we denoted as y in class. B.) The supply of real money balances . C.) Both of the variables above remain fixed along a given LM curve. D.) Neither of the variables above remains fixed along a given LM curve. 25. Assume that government purchases G have decreased. Before the decline in G, the economy was at the long-run level of output Y. In the short run, under the standard assumptions for the IS and LM curves, the decline in G would be expected to the real interest rate r and _output Y. A. ) Raise; raise. B.) Raise; reduce. C.) Reduce; raise. D.) Reduce; reduce. E.) None of the above. 26. (Continuing the previous question.) What is the initial, short-run effect of the decline in G on consumption C and investment I? A.) Consumption rises and investment rises. B.) Consumption rises and investment falls. C.) Consumption falls and investment rises. D.) Consumption falls and investment falls. E.) None of the above. 27. (Continuing the previous question.) Now consider the economy's long-run adjustment to the decline in G. As the economy makes this adjustment, the real interest rate r will and output Y will A.) Rise; rise. B.) Rise; decline. C.) Decline; rise. cons D.) Decline; decline. 28. (Continuing the previous question.) As this long-run adjustment takes place, which curve shifts slowly over time? (Note: a "shift" here can mean a shift in either direction-either up or down.) A.) The IS curve. B.) The LM curve. C.) The SRAS curve. D.) A.) and C.) E.) B.) and C.)