Use the Following to Answer Questions :
Exhibit: IS*-LM $I S _ { 1 } ^ { * }$

Multiple Choice

Use the following to answer questions :
Exhibit: IS*-LM*
-(Exhibit: IS*-LM*) A small open economy with a fixed exchange rate e₂ is initially at equilibrium A with $I S _ { 1 } ^ { * }$ $L M _ { 1 } ^ { * }$ and equilibrium output Y₁. If there is an increase in government spending to $I S _ { 2 } ^ { * }$ the new equilibrium will be at ____, holding everything else constant.

A) A
B) B
C) C
D) D