2. Use the following market for reserves to answer the questions below. Federal Funds Rate Quantity of Reserves a. Label the amount of nonborrowed reserves, the discount rate, id, the rate paid on reserves, i , and the equilibrium federal funds rate, if b. Show what happens when the Federal Reserve decides that contractionary monetary policy is needed and chooses to use open market operations to achieve their goals. What happens to the federal funds rate and the amount of nonborrowed reserves