I answered the question but I need to make an image of the graphics explaining these answers 1. If the economy's income increases and the Central Bank does not want to increase the money supply, it should lower interest rates: On the money supply and demand graph, the horizontal (x) axis represents the quantity of money and the vertical (y) axis represents the interest rate. The money demand curve is sloping, indicating that at higher interest rates people want to hold less cash. The money supply curve is vertical since the quantity of money is determined by the Central Bank.

When income in the economy increases, the demand for money also increases, shifting the money demand curve to the right. To prevent an increase in the money supply, the Central Bank must reduce interest rates, which will cause the demand for money to decrease. This results in a movement down the money demand curve until it equilibrates with the money supply.

2. If the money supply increases, you will need to raise the interest rate to clear the money market: If the Central Bank increases the money supply, the money supply curve shifts to the right. To balance the money market, interest rates must rise. On the graph, this would translate into a movement up along the money demand curve until it meets the new money supply curve.

3. If the money supply were to increase with the interest rate, what would the graph of such a curve look like? Under normal conditions, the money supply curve is vertical because the quantity of money does not change with interest rates. However, if the money supply were to increase with the interest rate, we would have an upward-sloping money supply curve. On a money supply and demand graph, this would look like a line rising diagonally from the origin, showing that the quantity of money increases as interest rates increase. This would be an atypical situation and would not conform to the expected behavior of a bank.