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1) Draw supply and demand for Reserves as shown in Chapter 15 , Figure 1 on page 344 : a) Clearly show interest on reserves

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1) Draw supply and demand for Reserves as shown in Chapter 15 , Figure 1 on page 344 : a) Clearly show interest on reserves iocr and the discount rate id and an cquilibrium federal funds rate between these two: irf b) Clearly show the horizontal range of demand for reserves Rd curve. Why is it flat on this segment? c) Clearly show the horizontal range of supply of reserves R ' curve. Why is it flat on this segment? d) In this model with s ioc

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