Show how Fed monetary tools can be used to increase investment. For the market for reserves, show and explain how the Fed can reduce the federal…

2. Show how Fed monetary tools can be used to increase investment. 

3. For the market for reserves, show and explain how the Fed can reduce the federal funds rate, FFR. 

4. Label the diagram. Identify shortrun and longrun equilibrium points as 1 and 2. Assuming flexible prices, explain how longrun equilibrium will be achieved. 

5. Label the diagram. Identify shortrun and longrun equilibrium points as 1 and 2. Assuming flexible prices, explain how longrun equilibrium will be achieved. 

6. Label the diagram. Identify shortrun and longrun equilibrium points as 1 and 2. Assuming inflexible prices, explain how fiscal policies can be used to obtain longrun equilibrium, show the effect of the policies. 

7. Label the diagram. Identify shortrun and longrun equilibrium points as 1 and 2. Assuming inflexible prices, explain how monetary policies can be used to obtain longrun equilibrium, show the effect of the policies. 

8. Label the diagram. Identify shortrun and longrun equilibrium points as 1 and 2. Assuming inflexible prices, explain policies that can be used to obtain longrun equilibrium, show the effect of the policies.