Help me with Qs from Macroeconmics Unit 4

Macroeconomics Unit 4 Study Guide obina youle Part 3 - Monetary Policy- Fill out the chart noll showing how each influences the economy. i nollafini bris do Recessionary 15. How does a decrease in the interest rate Gap Inflationary AS affect investment? Explain. on dec al of Gap or AD Long-run Self- to al beloeqxe erit al tariW dev ai sher 12619 Adjustment 16. What is the difference between the Fiscal Policy discount rate and the federal funds rate? WO Beitlidall Monetary Policy 210824 000,0S& ellaoqob brismed 000.52 Demand or Part 4- Loanable Funds- Fill out the chart. Real Interest (abgod) Supply 1 or Rate 17. To decrease unemployment, the government deficit spends emmavog to Doms Islol 18. Political unrest causes foreigners to take money out of the economy. 19. Businesses expect lower sales and worse economic conditions. 20. In anticipation of longer life expectancy, people begin to save more Part 5- FRQ Practice- Complete the following question from the 2017 AP exam (Question 2). 2. Assume that an economy is in long-run equilibrium. Assume that consumers wish to hold less money because they use credit cards more frequently to purchase goods and services than cash. (a) Draw a correctly labeled graph of the money market and show the effect of the reduced holdings of money on the equilibrium nominal interest rate in the short run. (b) Based on the change in the interest rate in part (a), what will happen to each of the following in the short run? (i) Prices of previously issued bonds fit theveig blugo farit allvented Inshello owl eis law or (ii) The price level and real income. Explain. (c) With a constant money supply, based on your answer to part b(ii), will the velocity of money increase, gril decrease, or remain the same, or is the change indeterminate? (d) If the central bank wishes to reverse the change in the interest rate identified in part (a), what open market operation would it use? laque vedoga ede floss