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For each scenario, complete the loanable funds graph and describe what happens to the equilibrium interest rate: a. The Federal Reserve Bank increases the required reserve ratio. (5 pts) b. The US economy is going through a boom and experiences an increase in GDP. (5 pts) The equilibrium interest rate will: A) Increase B) Decrease The equilibrium interest rate will: A) Increase B) Decrease c. The utility derived from assets purchased decreases. (5 pts) d. The Federal Reserve Bank adopts expansionary monetary policy. (5 pts) The equilibrium interest rate will: A) Increase B) Decrease The equilibrium interest rate will: A) Increase B) Decrease
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