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Q#3I: Assume the government of Happyland decided to increase government spending (G). Use the IS- LM model to illustrate and analyze graphically the effect of

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Q#3I: Assume the government of Happyland decided to increase government spending (G). Use the IS- LM model to illustrate and analyze graphically the effect of this expansionary scal policy on the income (30, interest rate (r), and Investment (I) under the following two cases: A) k3 points) If the demand for money is extremely sensitive to the interest rate. B) (3 points) If the investment is not sensitive to the interest rate. Instructions: - After you finish your graphs, please complete the mentioned table based on your analysis. To get the full mark, your answers in the table should match your work on your own graph. Be sure to label: (i). the axes (ii). the curves, (iii). the initial equilibrium values, (iv). The direction curves shift (if there), (v). the terminal equilibrium values (if there)

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