1) Graphically show how the below events affect the demand for money with a liquidity preference graph (r on the y-axis and qty of money on the…

1) Graphically show how the below events affect the demand for money with a liquidity preference graph (r on the y-axis and qty of money on the x-axis). In each case, show whether there is a shift of the demand curve or supply curve.  In addition state and show what happens to interest rate (r) and the qty of money in the economy. 

a.     Due to higher expenses, small retail stores are no longer accepting credit cards.

b.    There is an increase in the aggregate price level.

c.     The Fed has increased the discount rate.

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