DSE 2011 Question 52: IS-LM model

Consider the fixed-price model: $C=C_{0}+c_{1}(Y-T)$ with $0<c_{1}<1$; $I=i_{0}+i_{1}r$ with $i_{1}<0$; $Y=C+I+G$; money demand $M^{d}=m_{0}+m_{1}Y+m_{2}r$ with $m_{2}<0<m_{1}$; and $M^{d}=M$. In this economy, an increase in $G$