The Federal Reserve's next move on the federal funds rate is likely to be a hike in the rate created by a reduction in the supply of money. Show the effect of the reduction of money on the interest rate using the money market diagram. The use AD/SRAS/LRAS to show the effect on income and prices. Assume the economy is at full employment when the Fed acts.

The answer choices for the blanks are Blank 1: fall, remain the same, rise Blank 2: remain the same, rise, decline Blank 3: international trade, real balance, interest-rate

The Reserve Bank of Australia would like to decrease the interest rates in the economy. What open market operation (OMO) action should the central bank take? Explain in detail the OMO process and its implications for the cash rate, interest rates, inflation and GDP. Draw by hand the effect of the OMO process using the MD-MS diagram.

How does the federal government reduce interest rate? What happens to interest rate and quantity of money as a result of expansionary monetary policy? Please explain using a diagram of interest rates vs quantity of money. showing the relevant shifts in the supply and demand curve.

Assume the economy is currently operating at the natural rate of unemployment, what effects will using the Expansionary Monetary Policy // "stimulating the economy" have in the short run on output, price level, and interest rates?  Please use the AS/AD and Money Market diagrams to illustrate your answer.

The graph shows the demand for money curve and the supply of money curve. The Fed decreases the quantity of real money supplied to $3.9 trillion. Draw a new MS curve that shows the effect of the Fed's action. Label it. Draw a point at the new equilibrium quantity of money and interest rate. Before the Fed decreases the quantity of money, the equilibrium interest rate is percent a year. After the Fed decreases the quantity of money, at an interest rate of 4 percent a year, people want to hold money than the quantity supplied, so they bonds. A. more; sell B. less; buy C. less; sell D. more; buy The price of a bond A. falls; falls O B. rises; falls and the interest rate 8- 7- 6- 5- 4- 3- 2- 1- Nominal interest rate (percent per year) 4 0+ 3.8 MS 4.0 MD 4.0 4.1 3.9 Quantity of money (trillions of 2009 dollars) >>> Draw only the objects specified in the questi 4.2

In the last year there has been a significant increase in the inflation rate in Canada. Use the Keynesian transmission mechanism to explain fully the impact of this increase in inflation on each of the following: The money supply The demand for money The interest rate Aggregate Demand GDP. Remember to use subject

Change in the money supply

can you answer this for me

please als do the graphs. thanksssssssss