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1. What is the impact of an increase in taxes on the interest rate, income, consumption and investment? 2. What is the impact of a

1. What is the impact of an increase in taxes on the interest rate, income, consumption and investment? 2. What is the impact of a decrease in the money supply on the interest rate, income, consumption and investment? 3. Envision a point above the IS function: Which situation does this correspond to in the goods market? How does the adjustment process towards equilibrium occur

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