3 Using The Is Lm Graphs Show That A Decrease In Government Spending Will Cause Outp 3307529

3. Using the IS-LM graphs, show that a decrease in government spending will cause output and interest rates to fall. 4. Using the IS-LM graphs, show what will happen to output and the interest rates if there is a balanced budget increase in spending—that is higher spending financed by higher taxes. 5. Using IS-LM graphs, predict what will happen to output and the interest rate if the central bank reduces the money supply.

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