effects of monetary and fiscal policy

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Please refer to the attachment.

In order study the Monetary and Fiscal Policy by the IS-LM Model, we will start with the basic model and the shifts with IS-LM curves.

Note: all these changes to the IS LM curves are effected by changing the national income level Y and the interest rate i.

Now, the central bank adopts expansionary monetary policy by increasing Money supply, there will be a shift in the LM Curve from a Rise in Ms:

Ms↑: i↓in panel (b) and (a), then LM shifts to the ...