5. A policy mix in the IS-LM-IP model This question studies the effects of a monetary and fiscal policy mix in the IS-LM model in an open economy. Here, we focus on an economy with flexible exchange rates. (a) (5 points) Draw a diagram for the IS-LM-IP model. Denote the initial equilibrium by point A. (b) (5 points) Suppose that the government increases 7. Denote the new equilibrium by point B. What will be the effect of this change on Y, C, I, E, and NX? (c) (5 points) Suppose that the central bank decides to increase the supply of money to stabilize output in response to an increase in T as in (b). Denote the new equilibrium by point C. Compare Y, C, I, E, and NX under points A and C