22. Using the supply and demand analysis of the market for
reserves, indicate what happens to the federal funds rate, borrowed
reserves, and nonborrowed reserves, holding everything else
constant, under the following situations:
d) The Fed raises the interest rate on reserves above the
current equilibrium federal funds rate.
e) The Fed reduces reserve requirements.
f) The Fed reduces reserve requirements and then offsets this
action by conducting an open market sale of securities.