Question: can you help me to answer f. With the initial values for monetary and scal policy, suppose that the price level falls from 5 to

can you help me to answer

f. With the initial values for monetary and scal policy, suppose that the price level falls from 5 to 3. What happens? What are the new equilibrium interest rate and level of income? The LM curve shifts to the v by about 383.33. What are the new equilibrium interest rate and level of income? g. How do the monetary and scal policy changes in parts (1 and e impact aggregate demand? The increase in the government purchases causes aggregate The decrease in the money supply causes aggregate demand demand to to 0 increase. 0 not change. 0 decrease. 0 increase. 0 not change. 0 decrease. Consider the economy of Wiknam. The consumption function is given by C = 250 + 0.6(YT). The investment function is I = 100 20?. The money demand function is M () = Y 201'. P a! Round answers to two places after the decimal where necessary

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