![The Federal Reserve (Fed) expands the money supply by 5 percent. a. Use the theory of liquidity preference to illustrate in a graph the impact of this policy on the interest rate. The Federal Reserve (Fed) expands the money supply by 5 percent. a. Use the theory of liquidity preference to illustrate in a graph the impact of this policy on the interest rate.](https://homework.study.com/cimages/multimages/16/ques_8.1_24979638906417610986.jpg)
The Federal Reserve (Fed) expands the money supply by 5 percent. a. Use the theory of liquidity preference to illustrate in a graph the impact of this policy on the interest rate.
![What impact will an unanticipated increase in the money supply have on the real interest rate in the short run? | Homework.Study.com What impact will an unanticipated increase in the money supply have on the real interest rate in the short run? | Homework.Study.com](https://homework.study.com/cimages/multimages/16/image_2366957645518224672.jpg)
What impact will an unanticipated increase in the money supply have on the real interest rate in the short run? | Homework.Study.com
![With the help of a diagram, explain the effect of an increase in money supply on interest rate. | Homework.Study.com With the help of a diagram, explain the effect of an increase in money supply on interest rate. | Homework.Study.com](https://homework.study.com/cimages/multimages/16/instant602171091295248314.png)
With the help of a diagram, explain the effect of an increase in money supply on interest rate. | Homework.Study.com
![Monetary Policy Ch. 15 What's the relationship between money supply, interest rates, and aggregate demand? How can the Fed use its control of the money. - ppt download Monetary Policy Ch. 15 What's the relationship between money supply, interest rates, and aggregate demand? How can the Fed use its control of the money. - ppt download](https://images.slideplayer.com/47/11710247/slides/slide_4.jpg)