10 POINTS 2) Show your answer to the above question graphically. Pay particular attention to the initial equilibriums and the changes brought about by the change in the Money Supply. 15 POINTS 3 ) Keynesian theorists doubt the efficacy of monetary policy during a recessionary period. In 50 words or less explain why they feel this is the case. 15 POINTS 4) The Monetarists reach different conclusions regarding the effectiveness of monetary policy in manipulating the equilibrium level of nominal national product. Their analysis is based upon the equation of exchange. State the equation of exchange and the critical underlying assumption they make that drives their vision of monetary policy. 20 POINTS 5) Define PURE FISCAL POLICY. Describe how a deficit that arises from fiscal action may be financed by the Treasury that is consistent with a pure fiscal policy. Also provide an example of Treasury financing that would result in a fiscal policy that would not meet the definition of pure fiscal policy