1.If taxes and government spending rise by equal amounts, what will happen to the position of the IS curve? Explain this with a Keynesian cross diagram. 2. What happened to the IS curve during the...

1.If taxes and government spending rise by equal amounts, what will happen to the position of the
IS
curve? Explain this with a Keynesian cross diagram. 2. What happened to the
IS
curve during the Great Depression when investment spending collapsed? Why? 3. What happens to the position of the
LM
curve if the Fed decides that it will decrease the money supply to fight inflation and if, at the same time, the demand for money falls?