Problem
1. What are open market operations? How does the Fed use these to increase or decrease the money supply?
2. What condition is required for equilibrium in the money market? Why does the money market move toward equilibrium?
3. What can increase the equilibrium interest rate in the liquidity preference framework?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.