3. If you watch the news, you’ve undoubtedly heard mention that the Fed is going to raise or lower interest rates. What exactly does this mean? Explain how the Fed’s decision to raise and lower its discount rate might affect

(a) a large manufacturer of household appliances,

(b) a mid-sized software firm,

(c) a small restaurant,

(d) a family hoping to purchase their first home, and

(e) a college student. (Information)