Explain what happens to demand and supply

Reference no: EM131209204

Graph each case presented in question.

question
Assume the market for money is originally in equilibrium. Explain what happens to demand, supply, quantity demanded, and/or quantity supplied, ceteris paribus, given each of the following events:

a. The Fed lowers reserve requirements

b. House holds increase their spending plans.

c. Income falls due to a severe recession.

d. The Fed steps up its provision of reserves to depository institutions.

Reference no: EM131209204

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