Chrome File Edit View History Bookmarks People Tab Window Help ,3: Mind x I SOAE x .1 Recs x I x a Holit x - index x s SHE: x a ng.cengage.com/staticlnb/uilevo/index.htmndeploymentid=59978523900242724222147998saaeiseN297801messimai i Gmail YouTube 5 01H58M51S W Maps I Itinerary review ... :'g CENGAGE l MINDTAP Assignment 4 Part2 of 3 - Chapter 15 Questions 10 Moms)' Supplly 05 I l l O 0.1 02 03 0,4 05 06 07 08 MONEY (Trillions of dollars) Suppose the central bank announces that it is lowering its target interest rate by 75 basis points, or 0.75 percentage point. To do this, the central bank will use open~market operations to V the v money by V the public. Use the green line (triangle symbol) on the previous graph to illustrate the effects of this policy by placing the new mantel/supply curve (MS) in the correct location. Place the black paint ( plus symbol) at the new equilibrium interest rate and quantity of money. Suppose the following graph shows the aggregate-demand curve for this economy. The central bank's policy of targeting a lower Interest rate will V the cost of borrowing, causing residential and business investment spending to v and the quantity of output demanded to V at each price level. Shift the curve on the graph to show the general impact of the central bank's new interest rate target on aggregate demand. ' CD