1) shifts the supply curve to In the market for reserves, when if ier, an open market the and causes the federal funds interest rate to fall. 2) Suppose that in the federal funds market, if and id are both 8% and ier is 2.5%. Assume NBR are $1.2 trillion and Borrower Reserves are $0.1 trillion. If the FR Bank lowers the discount rate, then the equilibrium rate for reserves will and the amount of borrowed reserves will 3) In the market for reserves, if the federal funds rate is below the discount rate and above jer, then a decrease in the reserve requirement shifts the demand curve to the and the federal funds rate to