However, there are several instances where current consumption should be by far more significant. Even if you expect to be rich soon, it might not happen and you would consume very little paying back loans you took out when you were a poor student with great hopes. You may be unwilling to calculate your PDV wealth every year and reassess your consumption for the rest of your life and rather follow more simple rules. The package consists of a fiscal contraction and a monetary expansion. As a result, IS shifts down left and LM shifts down to the right.
Final effect is that interest rate goes down, and output is in principle ambiguous.
Regarding output, if said output constant then nothing else happens. Consumption goes down because T increase. If output constant nothing else happens. If output decreases C decreases too. Unemployment varies negatively with output.