By using the IS-LM model, what happens in the short run to the interest rate and output if the government increases expenditures? Illustrate your answer by drawing the IS-LM graph. (Hint: In your...

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Extracted text: By using the IS-LM model, what happens in the short run to the interest rate and output if the government increases expenditures? Illustrate your answer by drawing the IS-LM graph. (Hint: In your graph, put the interest rate on the vertical axis, and the level of output on the horizontal axis. Use IS-LM model to analyze the question.)