Question #6: IS-LM Model (Graphical Analysis) Use the IS-LM model to graphically illustrate the initial effect of each of the following on the equilibrium levels of output and the real interest rate. (a) A reduction in the tax rate on capital increases desired investment by firms. (b) An influx of working-age immigrants increases labor supply and lowers wages firms have to pay their workforce. (c) Increased usage of mobile payment services such as Venmo has reduced the demand for money