Explain how each of the following developments would affect the supply of money, the demand for money and the interest rate. illustrate your answers with diagrams. a. the fed's bond traders buy bonds in open-market operations. b. an increase in credit-card availability reduces the amount of cash people want to hold. the federal reserve reduces banks' reserve requirements. d. households decide to hold more money to use for holiday shopping. e. a wave of optimism boosts business investment and expands aggregate demand.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.