Question: What would the Fed have to do in the following instances to keep the interest rate constant? Demonstrate graphically. a. A significant number of people

What would the Fed have to do in the following in¬stances to keep the interest rate constant? Demonstrate graphically.
a. A significant number of people begin to use credit cards for daily transactions, reducing the amount of money they hold.
b. Bond traders expect bond prices to fall, and therefore increase their cash holdings.

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