What will happen to the equilibrium interest rate

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Reference no: EM13203155

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.

Reference no: EM13203155

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