State what will happen to the supply and/or demand curves for money
and what will happen to the equilibrium interest rate. I do not need the actual supply and demand graph. I only need a narrative of the graph.
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.
c. The Fed acts to hold interest rates constant during a period of high inflation.
d. During a period of no growth in GDP and zero inflation, the Fed lowers the discount rate.
e. During a period of a rapid real growth of GDP, the Fed acts to increase the reserve requirement.