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Question #5: IS Curve Suppose that in a press conference following a meeting by the Federal Open Market Committee (FOMC), the Chair of the Federal

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Question #5: IS Curve Suppose that in a press conference following a meeting by the Federal Open Market Committee (FOMC), the Chair of the Federal Reserve announces that interest rates would increase. As a result, interest rates increase to their highest levels since 2011. Show graphically how this announcement would affect the IS curve. Question #6: IS-L lodel

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