Using the IS-LM curves, illustrate the following: a) Fed purchases government bonds (10 points) b) Fed holds the interes

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Using the IS-LM curves, illustrate the
following:
a) Fed purchases government bonds (10
points)
b) Fed holds the interest rates constant while
there is a decrease in government spending. What specific policy
(just one) Fed can pursue to hold interest rate constant? (15
points)
0
c) A self-fulfilling wave of pessimism about the future
of the economy (animal spirits) (10 points)
d) Fed holds income constant while there is an increase
in taxes. What specific policy (just one) Fed can pursue to hold
income constant? (15 points)