In Figure 15.3,the Fed can change the equilibrium interest rate from 2 percent to 6 percent by

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By raising the discount rate, the Fed essentially makes it more expensive for banks to borrow money from the Fed, which in turn encourages banks to raise their own interest rates. This can cause a ripple effect throughout the economy, leading to an increase in the equilibrium interest rate. Buying bonds in the open market and decreasing the reserve requirement can also impact interest rates, but not to the extent required to increase the equilibrium rate from 2 to 6 percent. Increasing the amount of coins in circulation is not a tool typically used by the Fed to affect interest rates.