Use the Following to Answer Questions

question 20

Multiple Choice

Use the following to answer questions :
Exhibit: Policy Interaction
-(Exhibit: Policy Interaction) Based on the graph, starting from equilibrium at interest rate r₃, income Y₂, IS₁, and LM₁, if there is an increase in government spending that shifts the IS curve to IS₂, then in order to keep the interest rate constant, the Federal Reserve should _____ the money supply shifting to _____.

• A) increase; LM₂
• B) decrease; LM₂
• C) increase; LM₃
• D) decrease; LM₃

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Definitions:

Required Topic

A subject or area designated as necessary or obligatory to study, address, or complete.

National Association For Medical Assistants

A professional organization that represents the interests of medical assistants and promotes their professional skills and ethics in the healthcare industry.

Orthopedic Medical Assistant

A healthcare professional who supports orthopedic physicians in treating musculoskeletal system conditions.

Musculoskeletal System

The organ system that enables humans to move using the muscular and skeletal systems, including bones, muscles, cartilage, tendons, ligaments, and joints.