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What happens to the interest rate income consumption and

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According to the IS-LM model, what happens to the interest rate, income, consumption, and investment under the following circumstances? Support your answer with suitable diagrams.

a) The Central Bank increases the money supply. 

b) The government increases government purchases. 

c) The government increases taxes. 

d) The government increases government purchases and taxes by equal amounts.

Reference no: EM131053184

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