. What is the impact of an increase in taxes on the interest rate, income, consumption and investment? . What is the impact of a decrease in the money supplv on the interest rate. income, consumption and investment? Envision a point above the IS function: Which situation does this correspond to In the goods market? How does the adjustment process towards equilibrium occur? Envision a point below the LM curve: Which situation does this correspond to in the money market? How does the adjustment process towards equilibrium occur