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.