3) The demand curve and supply curve for one-year discount bonds with a face value of $1,000 are presented by the following equations: Bd :Price = -Quantity + 1000 Bs: Price = Quantity + 700 a) Suppose that, as a result of monetary policy actions, the Federal Reserve sells 50 bonds that it holds. Assume that bond demand and money demand are held constant. b) How does the Federal Reserve policy affect the bond supply equation? c) Calculate the effect on the equilibrium interest rate in this market, as a result of the Federal Reserve action. 3) The demand curve and supply curve for one-year discount bonds with a face value of $1,000 are presented by the following equations: Bd :Price = -Quantity + 1000 Bs: Price = Quantity + 700 a) Suppose that, as a result of monetary policy actions, the Federal Reserve sells 50 bonds that it holds. Assume that bond demand and money demand are held constant. b) How does the Federal Reserve policy affect the bond supply equation? c) Calculate the effect on the equilibrium interest rate in this market, as a result of the Federal Reserve action