The goods market (IS) is represented by Y=C+I with

C = 144+0.8Y and I = 294-225i

The financial market (LM) is represented by Ms=Md with

Md = Mt+Mz and in turn, Ms = 750, Mt = 0.3Y and Mz = 156-450i

1. Find the Equilibrium income and Interest Rate.

If people's consumption (C) increases to become C = 154.5+0.8Y

2.How will this affect (Y) the Equilibrium Income and the Interest Rate?

If money supply increases to Ms = 780

3. What will be the new equilibrium Interest Rate?