||Das C) an immediate decrease III D) none of the above 12. A tax cut combined with tight money, as was the case in the United States in the early 1980s. should lead to a: A) rise in the real interest rate and a fall in investment. B) fall in the real interest rate and a rise in investment. C) rise in both the real interest rate and investment. D) fall in both the real interest rate and investment 13. An increase in income in period one in Irving Fisher's two period model of intertemporal choice increases consumption in: A. period one, but decreases consumption in period two. B. period one, but does not change consumption in period two. C. both periods one and two, as long as consumption in period one and consumption in period two are both normal goods. D. period two, but does not change consumption in period one.