For each of the following events, state (1) the impact on the money demand curve, and (2) whether the Fed should increase or decrease the money supply if it wants to keep the interest rate unchanged.
a. People start making more of their purchases over the Internet, using credit cards.
b. Greater fear of credit card fraud makes people stop buying goods over the Internet with credit cards, and discourages the use of credit cards in other types of purchases as well.
c. A new type of electronic account is created in which your funds are held in bonds up to the second you make a purchase. Then—when you buy something—just the right amount of bonds are transferred to the ownership of the seller.