Problem 2. Mix of Money and IS-LM Suppose an increase in robberies in the streets makes people hold less money. a) b) ) d) How does this event affect the money market if the Fed keeps the money supply constant? Graph the money market How does this event affect the money market if the Fed keeps the interest rate constant? Graph the money market How does this event affect the IS-LM diagram if the Fed keeps the money supply constant? Graph in IS-LM How does this event affect the IS-LM diagram if the Fed keeps the interest rate constant? Graph in IS-LM