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The question is as follows: Q.1. Using the IS-LM model, explain the mechanism through which an increase in the discount rate by the Federal Reserve

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Q.1. Using the IS-LM model, explain the mechanism through which an increase in the discount rate by the Federal Reserve will lead to a different equilibrium in the goods market. Explain your answer using the following graphs: (a) investment market (b) Keynesian cross (c) ISLM and ((1) money market

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