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Question 17

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Use the following to answer questions :
Exhibit: IS-LM Monetary Policy Use the following to answer questions : Exhibit: IS-LM Monetary Policy   -(Exhibit: IS-LM Monetary Policy)  Based on the graph, starting from equilibrium at interest rate r<sub>1</sub> and income Y<sub>1</sub>, an increase in the money supply would generate the new equilibrium combination of interest rate and income: A)  r<sub>2</sub>, Y<sub>2</sub> B)  r<sub>3</sub>, Y<sub>2</sub> C)  r<sub>2</sub>, Y<sub>3</sub> D)  r<sub>3</sub>, Y<sub>3</sub>
-(Exhibit: IS-LM Monetary Policy) Based on the graph, starting from equilibrium at interest rate r1 and income Y1, an increase in the money supply would generate the new equilibrium combination of interest rate and income:


A) r2, Y2
B) r3, Y2
C) r2, Y3
D) r3, Y3

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