>> Business Economics
A. What happens to the money supply if the Federal Reserve Bank increases interest rates at their next meeting in September? Make sure to include the appropriate equation. Make sure to include a money graph.
B. How would this change in interest rates alter C, I, and AD? What would then happen to output (GDP) and inflation? Make sure to graph the goods (AD/AS)graph. What type of impact do you think this will have on unemployment and future prices?