Use the IS-LM model to answer the next five questions on the impact of the Federal Reserve's decision to increase the money supply on the real economy in the long and short run.

Now illustrate how this change will impact the IS-LM model. Instructions: (1) Use the move (arrow) tool to shift either the IS or LM curve. (2) use the line segment tool to draw a line from the new equilibrium to the vertical axis. (3) Use the label tool to label this point on the vertical axis (r*) (4) Use the line segment tool to draw a line from the new equilibrium to the horizontal axis. (5) Use the label tool to label this point on the horizontal axis (Y*) (6) Take a screenshot and upload your picture as above. ABC E IS Interest Rate (r) LM 8 7 6 5 LM IS 4 3