Interest rate (%) 864 MS M + 100 300 Money ($ million) Refer to the figure above. If the Fed increases the reserve requirement Md

Interest rate (%) 864 MS M₁₁ + 100 300 Money ($ million) Refer to the figure above. If the Fed increases the reserve requirement Md the money supply curve will shift from Mo to M₁ the money supply curve will shift from M₁ to Mo the money supply curve will remain at M₁ the money supply curve will remain at M

  

Interest rate (%) 864 M M 100 300 Money ($ million) Md Refer to the figure above. If the Fed increases the reserve requirement