Illustrate the following situations using supply and demand curves for money. No graph needed only state what will happen to the supply and/ or demand curves for money and what will happen to the equilibrium interest rate.
a. The fed buys bonds in the open market during a recession.
b. During a period of rapid inflation, the fed increases the reserve requirement.
d. During a period of no growth in GDP ad zero inflation, the Fed lowers the discount rate.