(Answered) IS-LM model. There has been an increase in autonomus consumption. Explain and diagrmatically…

➤ Why does investment face partial crowding out after the IS shift?
Higher autonomous consumption raises income and pushes the interest rate up. The higher r makes borrowing and planned investment costlier, so some investment falls. Because the money market (LM) still constrains r, investment is reduced only partially while overall output increases.