Ex) . List three functions performed by the US. Treasury: (3 Points) If the FED sells $5 billion in U.S. Treasury Bonds to the public and the required reserve ratio for banks is 10%. what is the change in the money supply? (2 Points) . Answer the following questions assuming the economy is in a recession and the FED decides to lay bonds 'om the public: El. d. 1What is the impact of the FED's action on bank reserves? {1.52 Point) Increases OR Decreases 1What is the impact of the change in bank reserves on the money supply? {1.52 Point) Increases OR Decreases As the money supply changes. which direction does the money supply line moye'? (1.52 Point] Left OR Right The shift in the money supply line results in a new equilibrium with a: [1.32 Point) Higher interest rate OR Lower interest rate Draw the money supply and demand curves. properly labeling the x-axis and y-axis. to show the change in the money supply and the resulting impact on interest rates. (5 Points] As a result of the change in interest rates. im'estments: (1.52 Point] Increase OR Decrease The change in inyestments results in: [1.52 Point) 0 A decrease in output and a decrease in employment A decrease in output and an increase in employment An increase in output and a decrease in employment An increase in output and an increase in employment 000 As a result of the change in employment. income: {1.32 Point) Increases OR Decreases The change in income causes consumption to: (1.52 Point] Increase OR Decrease As consumption changes. which direction does the demand curve for goods and services moye'? [1;'2 Point) Le: OR Right The shift in the demand curve for goods and services results in a new equilibrium with: (1.52 Point] Lower prices OR Higher prices Draw the supply and demand curve for goods and services. properly labeling the x- axis and y-axis. to show the change in equilibrium. (5 Points]