Illustrate each of the following situations with a graph showing the IS curve and the Fed rule, and explain what happens to the equilibrium values of the interest rate and output: a. An increase in G with the money supply held constant by the fed b. A decrease in Z with no change in Government soending PLEASE SHOW GRAPH

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter20: Monetary Policy
Section: Chapter Questions
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Illustrate each of the following situations with a graph showing the IS curve and the Fed rule, and explain what happens to the equilibrium values of the interest rate and output:

a. An increase in G with the money supply held constant by the fed
b. A decrease in Z with no change in Government soending
PLEASE SHOW GRAPH
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