The following graph represents the money market for some hypothetical economy. This economy is similar to the Uniged states in the sense that it his a central bank called the Fed, but a major ditference is that this economy is closed fand therefore does not hume any interbction with other world economses). The money market is currenthy in equilibrium at an interest rate of 4 hi and a quartity of moncy equal to \$o.4 trillion, designated an the graph by the grey star symbol Suppose the Fed announces that it is lowering its target interest rate by 75 basis points, or 0.75 percentage points, To do this, the Fed will use open. market operations to money by the publici Use the green Nine (Eiangle symbod) on the previois graph fo imustrate the effects ar this policy by placing the new maney supply curve (MS) in the correct location. Place the black point (plus symbod) at the new equmbilum interest rate and quantity of maney. Suppose the following graph shows the aggregate demand curve for this economy. The Fed's policy of targeting a lower interest rate will the cost of borrowing, cauting residential and business imsestment spending to and the quantity of output deenanded to at each price level. Shitt the curve on the graph to show the general impact of the fed's new interest rate target an aggregate demand. Shift the curve on the graph to show the general impact of the Fed's new interest rate target on aggregate demand. The following graph represents the money market for some hypothetical economy. This economy is similar to the Uniged states in the sense that it his a central bank called the Fed, but a major ditference is that this economy is closed fand therefore does not hume any interbction with other world economses). The money market is currenthy in equilibrium at an interest rate of 4 hi and a quartity of moncy equal to \$o.4 trillion, designated an the graph by the grey star symbol Suppose the Fed announces that it is lowering its target interest rate by 75 basis points, or 0.75 percentage points, To do this, the Fed will use open. market operations to money by the publici Use the green Nine (Eiangle symbod) on the previois graph fo imustrate the effects ar this policy by placing the new maney supply curve (MS) in the correct location. Place the black point (plus symbod) at the new equmbilum interest rate and quantity of maney. Suppose the following graph shows the aggregate demand curve for this economy. The Fed's policy of targeting a lower interest rate will the cost of borrowing, cauting residential and business imsestment spending to and the quantity of output deenanded to at each price level. Shitt the curve on the graph to show the general impact of the fed's new interest rate target an aggregate demand. Shift the curve on the graph to show the general impact of the Fed's new interest rate target on aggregate demand