When the economy booms, businessmen normally find it easy to make money. There are many more profitable firms than unprofitable firms. Bankers are much certain that many clients are able to return the principal and pay interests. Now, suppose a clear sign appears that the economy starts recovery and will boom. (a) Suppose the economic recovery is resulted from a higher confidence of investors. How will this affect the IS curve? You should first indicate which element in the goods market is affected, using a Keynesian cross diagram. Then, discuss how this will change the IS curve. (b) How will this confirmation of recovery affect the money multiplier? Briefly explain. (c) Suppose the central bank does control the monetary base at the fixed level. How will the LM curve be affected by (b)? You should first indicate which element in the money market is affected, using a money demand-supply diagram. Then, discuss how this will change the LM curve. (d) Use an IS-LM diagram to illustrate what will happen to the equilibrium output and interest rate