Question: Econ 203 lab question, please help me answer these two questions. ty Question 1 [6 points] Suppose the central bank decides to use its power

Econ 203 lab question, please help me answer these two questions. ty

Econ 203 lab question, please help me answer these two questions. ty

Question 1 [6 points] Suppose the central bank decides to use its power to set the money supply constant. Use the money market diagram below to show what happens to the demand for money and answer what happens to the money supply and interest rates if real output decreases. a) Show what happens to the demand for money in the money market diagram. v Money Demand Curve E as a: '6 2 102030405060708090 Real Money Balances WP a b) Fill in the blanks with their appropriate movements in the following statement. In this situation, the money supply will _ and the interest rate will _

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