What kind of policy mix would you recommend and how would your policy mix affect the composition of GDP?

What kind of policy mix would you recommend and how would your policy mix affect the composition of GDP? Explain your answer with the help of an IS-LM diagram. Problem 3 (based on chapter 11) "Fiscal policy is more effective when money demand is more interest inelastic." Is this statement true or false? Why? Problem 4 (based on chapter 12) "Expansionary fiscal policy cannot change real output under fixed exchange rates and perfect capital mobility." Is this statement true or false? Why?