Question: AP Macroeconomics | 6.3 Free Response Assignment (6 points) Directions: Answer the questions based on the following information: The central bank in the country of

AP Macroeconomics | 6.3 Free Response Assignment (6 points) Directions: Answer the questions based on the following information: The central bank in the country of Cowen has decided to purchase bonds on the open market. 1. Based upon the central bank's decision, will the number of loans that banks are able to make increase, decrease, or stay the same? (1 point) 2. Draw a correctly labeled money market graph showing the impact of the central bank's policy decision. (2 points) 3. Using your graph in the previous question, describe what happened to nominal rates. (1 point) 4. What is the impact of Cowen's central bank on the following: (2 points) a. Price Level

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