Question 1 Introduction (3 Parts, 15 points total) Suppose the Fed decides to buy $1 billion in Treasury bonds from the public. Assume that the reserve requirement is 10%. Question 1 10 pts 1a. Draw a clearly-labeled graph that shows the original and the new equilibrium in the money market For help constructing and uploading a graph in Canvas, please see the Inserting a Graph tutorials. Upload Choose a File Question 2 10 pts 1b. What happens to the interest rate and the money supply? HTML Editor BIVA I.EE DT: 12pt Paragraph 10. What is the total increase or decrease in the money supply which could result from the Fed's action? Explain your answer. HTML Editor B I VA - A - IK EE 3 1 1 x X, SEE DE ? T 12pt Paragraph Question 1 Introduction (3 Parts, 15 points total) Suppose the Fed decides to buy $1 billion in Treasury bonds from the public. Assume that the reserve requirement is 10%. Question 1 10 pts 1a. Draw a clearly-labeled graph that shows the original and the new equilibrium in the money market For help constructing and uploading a graph in Canvas, please see the Inserting a Graph tutorials. Upload Choose a File Question 2 10 pts 1b. What happens to the interest rate and the money supply? HTML Editor BIVA I.EE DT: 12pt Paragraph 10. What is the total increase or decrease in the money supply which could result from the Fed's action? Explain your answer. HTML Editor B I VA - A - IK EE 3 1 1 x X, SEE DE ? T 12pt Paragraph