5. Provide an example of contractionary Monetary Policy. 6. Provide an example of Money Demand shifting outward. 7. Provide an example of banking technology decreasing Money Demand. 8. Provide an example of Monetary Policy that the Federal Reserve does not often use. Part III - Short Answer 9. Using the Liquidity Preference Model show what happens to the interest rate when (a) The Fed purchases bonds. (b) Price Level increases. (c) Real GDP increases and the Fed sells bonds. 10. What tools does the Federal Reserve have to 'control' the money supply? 11. In the last question controls was in quotes. What is the better way of say what the question was getting at? 12. Why do economists often prefer monetary policy over fiscal policy? Part IV Readings 13. Read 'Mankiw Liquidity Trap 2003'. In hindsight is the liquidity trap an issue? 14. Read 'Macroeconomic update...'. What is a 'soft landing?? The article was published in August 2022. Do you think the United States is still on track for a soft landing? Why or why not?