Question: Explain how each of the following developments would affect the supply of money, the demand for money, and the interest rate. Illustrate your answers with

Explain how each of the following developments would affect the supply of money, the demand for money, and the interest rate. Illustrate your answers with diagrams.

a. The Qatar Central Bank's bond traders buy bonds in open-market operations.

b. An increase in credit card availability reduces the cash people hold.

c. The Qatar Central Bank reduces banks' reserve requirements.

e. A wave of optimism boosts business investment and expands aggregate demand.

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