2) Using the supply and demand framework for money presented in chapter 5 of the Mishkin text, illustrate what happens to the equilibrium quantity of money held and interest rates if the following events occurred. In each case, assume that there are no income, price level, or expected inflation effects-that is only consider the initial liquidity effects: (10 points) a) There is a large change in expectations such that people see stocks as a much less attractive investment. As a result, people shift away from stocks and toward money market mutual funds and savings deposits. Illustrate what happens if, in response, the Federal Reserve alters the supply of broadly defined money (that is, M2) so that bond prices (and thus interest rates) are unchanged. b) The risk of currency fraud falls with the adoption of an electronic, verifiable form of new U.S. currency so that currency has become more accepted as a means of payment by many firms or entail much shorter delays to verify that the currency is not counterfeit. Illustrate what happens to the demand for money. Illustrate what happens if, in response, the Federal Reserve alters the supply of money so that bond prices (and thus interest rates) are unchanged