The demand curve and supply curve for one-year discount bonds with a face value of $1,000 are represented by the following equations Bd: Price = 0.5 Quantity + 1,200 Bs: Price = Quantity + 800 Suppose that, because of monetary policy actions, the Federal Reserve buys 100 bonds from the market. Assume that bond demand and money demand are held constant. a. (10 points) How does the Federal Reserve policy affect the bond supply equation? b. (10 points) Calculate the effect of the Federal Reserves action on the equilibrium interest rate in this market.