4. Money Markets and IS-LM Suppose an increase in robberies in the streets makes people hold less money. a) How does this event affect the money market in the short-run if the Fed keeps the money supply constant? Graph the effects of this shock in the money market and IS-LM diagrams. b) How does this event affect the money market in the short-run if the Fed keeps the interest rate constant? Graph the effects of this shock in the money market and IS-LM diagrams