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( i) The Government Raise the tax rate thing . Tax increase will clause drop in disposable income! , Which drop 20 Consumption due to which , demand reduces!.on1.. . 9292?! Hence, Is curve Shift G acwards which luduch interest rates and lethut Interest Rate BDC DELLA ALL IN V IS Is! outhut : I'S - LM Curve(i ) The Central Gank Sells Securities area's in the money Market .. I' Central bank Sells securities creds in the money market it willmom decrease money supply by ecemoving cash from (Econoray inexchange) for bonds ! ! !d central boule bell securites it wills Shift LM cure bucward due to which interest rate rises and brien go down with clearcase in Output. Mincerent - Rube LM!. LM IN' IN IS . D Cuthut . I'S - LM curve .( in , The government raises tors Eater and. the Central bank conducts OMO absorption. We Know that Increase in texx raffels Is Curve shifting lyfwards and also, if Central 0 bank conducts OMO LM O curve shifts backwards .LM Interest Rate LM IN' - A IN - - IS Is y ' out but . IS - LM Model Backward Shift in IS Curve and leftward Shift in IM curve . due to increase in tax and and Opting OMO by Central bank