1. We can continue our study of the ISLM framework by reviewing a dynamic interactive site. Go to http://nova

.umuc.edu/~black/econ0.html. Assume that the change in government spending is $25, the tax rate is 30%, the velocity of money is 12, and the money supply is increased by $2. What is the resulting change in interest rates? (Be sure to check the button above ISLM.)