(Combine Loanable Funds Market and Money Market to nd the original overall equilibrium and the eects of various policies) (a) Combine the LM line from question 1 part a and the IS line from question 2 part b to nd what is the equilibrium level of income Y and the real interest rate r . Also show it graphically. (b) Starting at the equilibrium you found in part a, the Fed increases money supply from MS 1 = 1000 to MS 2 = 1200. What happens to r and Y ? Compute the new equilibrium values for r, Y . (c) Starting at the equilibrium you found in part a, the Government increases taxes from T1 = 100 to T2 = 200. What happens to r and Y ? Compute the new equilibrium values for r, Y . (d) Starting at the equilibrium you found in part a, the Government increases taxes from T1 = 100 to T2 = 200 and at the same time increases government spending from G1 = 100 to G2 = 200. What happens to r and Y ? Compute the new equilibrium values for r, Y .