When the Federal Reserve desires to stimulate the economy, it intervenes in money and, recently, even capital markets, buying bonds and short-term instruments to drive up their price thereby driving interest rates down. Discuss the mechanics of this in the context of the classical model of interest rate determination. Specifically, in the classical model: i.Which sector of the economy provides funds (lends) to the market? ii.Which sector of the economy uses funds (borrows) from the market? iii.Which of these two sectors is the Fed aiming at with its low interest rate policy? That is, which of them will respond to low interest rates by increasing economic activity? iv.Explain why the sector you indicated in (iii) responds in this way to low interest rates.