Answer to Question 1
In order to lower the interest rate, the Fed increases the quantity of money. In the short run, when the quantity of money increases, the interest rate falls.
Answer to Question 2
The nominal interest rate is determined in the money market by the interaction of the demand for money and the supply of money. If the nominal interest rate is less than the equilibrium, there is an excess demand for money. In order to increase the quantity of money they hold, people sell bonds and other financial assets. As a result, the price of financial assets falls and the interest rate rises. People continue to sell assets and the interest rate continues to rise until it reaches its equilibrium.
Variation in the rate of evolution as a function of the strength of selection, assuming genetic drif
Mammography. (b) A mammogram. A tumor is visible in this mammogram, indicated by the arrow in the lo
Temperature Changes on Heart Rate
The lower respiratory tract and the process of gas exchange.
The upper intake manifold, often called a plenum, attaches to the lower intake manifold.
How an Increase in Income Inequality Affects the Desired Tax Rate