Question: C - IS-LM (16 Points) Draw the IS-LM curve for each of the 4 cases below. -In each case indicate what happens with Output and
C- IS-LM (16 Points) Draw the IS-LM curve for each of the 4 cases below.
-In each case indicate what happens with Output and Interest Rates when (A) Government purchases (G) increases, and (B) when Money Supply increases (M). Use Graphs to show this. brief explain each of the graphs.
1-Investment does not depend on the interest rate and Consumption depends on disposable income.
A)
B)
2-Money Demand does not depend on the interest rate
A)
B)
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