The price level and the market for bank reserves The following graph shows the m

Question

The price level and the market for bank reserves

The following graph shows the market for bank reserves in a hypothetical economy. Suppose the price level increases from 60 to 110.

Shift the appropriate curve on the following graph to show the impact of an increase in the overall price level.

PLEASE SHIFT IT FOR ME PLEASE!!!

Analyze the effects of this change in the price level, then fill in the following table with these results.

Effect Federal funds rate Increases/Decrease/Remain the Same   Aggregate demand curve No change/Shift of the curve/Movement along the curve   Supply 5 Demand 4 Supply 3 Demand 0 0 10 20 40 50 60 QUANTITY OF BANK RESERVES (Billions of Dollars) Analyze the effects of this change in the price level, then fill in the following table with these results

Explanation / Answer

When Price level increases from 60 to 110 then the demand curve will shift to the right and there will be incraese in federal fund rate.

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