How fed buy security in open market affect supply of money

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Below are events that might affect the supply of money, the demand for money, and/or the interest rate. Explain how each event may affect these three economic variables. Use graphs if appropriate. if you use a graph, that's fine I have Excel, but it looks here that it's not required, just a tool to make the point of the paper. This is up to you.

  1. The Fed buys securities in the open market.
  2. The reserve requirement is increased.
  3. Consumers decide to save and reduce their spending on consumer goods.

Reference no: EM132448568

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