question;

In answering the question, you should emphasize the line of reasoning that generated 1your results; it is not enough to list the results of your analysis. Include conectly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves cleady labeled and must show directie nal changes. {Scoremrmreson f: onpofnJ 1. Suppose that changes in bank regulations expand the availability of credit cards so that people need to hold less cash. {a} How does this event affect the demand for money\"?I {b} If the Fed does not respond to this event, what will happen to the price Ielrel'iI {c} If the Fed wants to keep the price level stable, what should it do? Type your answer here: \f