In the model pictured below, a relationship is pictured between the quantity of money that exists in an economy at a point in time and the interest rate at which money is lent and borrowed. MS, Interest rate, r MD, 0 M1 Quantity of money 1. If it is felt that the interest rate is too low in this economy, what can be done to raise it? 2. Name the party that is taking the action and what specific action could be taken to achieve this desired change