(Solved): 1. Draw a correctly labeled graph of the money market and identify each of the following on the cor ...

1. Draw a correctly labeled graph of the money market and identify each of the following on the correct axis: - Equilibrium interest rate (i) - Equilibrium quantity of money (Q) Assume an expansionary monetary policy is implemented within a limited reserves framework. Illustrate the resulting change, then identify the new equilibrium interest rate (i1) and quantity of money (Q1). 2. Draw a correctly labeled graph of the money market and identify each of the following on the correct axis: - Equilibrium interest rate (i) - Equilibrium quantity of money (Q) Assume price level rises. Illustrate the resulting change, then identify the new equilibrium interest rate (i1) and quantity of money (Q1). 3. Draw a correctly labeled graph of the reserve market and identify the policy rate. Assume supply intersects demand within the range of ample reserves. Show the effects of the central bank increasing administered interest rates in an attempt to decrease inflation. 4. Draw a correctly labeled graph of the loanable funds market. Identify the following: - Equilibrium interest rate $$(r)$$ - Equilibrium quantity of loanable funds (Q) Assume an increase in household savings. Illustrate the resulting change, then identify the new equilibrium interest rate ( $$r1$$ ) and quantity of money (Q1).