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Exhibit: IS-LM Fiscal Policy Use the following to answer questions : Exhibit: IS-LM Fiscal Policy -(Exhibit: IS-LM Fiscal Policy) Based on the graph, starting from equilibrium at interest rate r<sub>1</sub> and income Y<sub>1</sub>, an increase in government spending 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 Fiscal Policy) Based on the graph, starting from equilibrium at interest rate r1 and income Y1, an increase in government spending 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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