Your engine has the cable type throttle control. The knob on the end of the tiller handle is a fine adjustment for idle speed. You can only get about 4 turns on it, turning clockwise will increase the idle speed.
If that is not enough, then turn that knob about two turns so that it is set about halfway. Now pop the hood and look on the side where the throttle cable end it at. The cable attaches to the throttle arm with a ball and socket type joint (called a heim joint). Pop the socket off of the ball, and you can adjust the initial throttle position with the socket end since it is threaded. Turning it counter clockwise will adjust it further out and increase the idle speed.
My engine, an 86 9.9, is set up the exact same way. I also had idle issues and stalling, until I adjusted the heim joint. No problems now.
EDIT: Also give this site a read. He gives good instructions on how to check the timing and adjust the mixture, idle, and timing so you motor will run correctly, especially at low speed.
http://www.leeroysramblings.com/Johnson_9.9_carb-fuel_pump.htm