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(A) Explain how the following will affect the IS (shift, move along and in what direction).Be sure to trace the effects to the relevant markets

(A) Explain how the following will affect the IS (shift, move along and in what direction).Be sure to trace the effects to the relevant markets and use graphs to help.

(i) A decrease in the marginal propensity to consume

(B) Explain how the following will affect the LM (shift, move along and in what direction).Be sure to trace the effects to the relevant markets and use graphs to help.

(i) A decrease in income resulting in a decrease in money demand

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