Suppose the government implements fiscal consolidation by cutting spending while the nominal interest rate is already at zero or near zero percent. Given πeequals to π ̅ , fiscal consolidation will likely lead to:   a. Increasing inflation, decreasing real interest rate and a recession   b. Increasing inflation and real interest rates, and a recession   c. Deflation spiral, decreasing real interest rate and a recession   d. Deflation spiral, increasing real interest rate and a recession   e. All of the answers here are incorrect

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