Question: Please answer question 5 only 2. An increase in credit card fees causes people to use credit cards less often for transactions and demand more

Please answer question 5 only

Please answer question 5 only 2. An increase in credit card fees

2. An increase in credit card fees causes people to use credit cards less often for transactions and demand more money. Using the graph in #1, show the impact of this change in consumer behavior. Make sure to clearly label your graph. 3. Given the change in interest rates in #2, what will happen to bond prices in the short run? 4. Given the change in interest rates in #2, what will happen to the price level in the short run? Explain your reasoning. Hint: it may be helpful to draw an AS/AD graph. 5. The Federal Reserve wants to keep nominal interest rates constant at the level before the increase in credit card fees. How can the Fed accomplish this goal? Extra credit points for listing more than one way

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