The Federal Reserve is tasked to attain the dual mandate of maximum employment (bringing the GDP back to its potential) and price stability (maintaining the inflation to the stable level of 2%). d) (3 points) In what direction must the interest rate (Fed Funds Rate, saving and borrowing interest rates) change to restore the GDP and inflation? Why? e) (6 points) What should the Federal Reserve do in the open market operations? How would Treasury yield interest rate change? How would this affect the Federal Reserve's and Banks' balance sheets? Federal Reserves Banks Assets Liabilities Assets Liabilities T-Bills Reserves Reserve s Deposits T-Bills f) (6 points) With the suitable action by the Federal Reserve as proposed in part d) and e), Depict the changes in the AD-SRAS-LRAS model, then plot the variables of real GDP and inflation rate over time