According to the IS-LM model, if Congress raises taxes but the Fed wants to hold income constant, then the Fed must the money supply.

Name: According to the IS-LM model, if Congress raises taxes but the Fed wants to hold income constant, then the Fed must the money supply.
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To offset the contractionary effect of higher taxes on income, the Fed would need to increase the money supply to stimulate investment and consumption, thereby maintaining the income level.

According to the IS-LM Model, If Congress Raises Taxes but the Fed