3. What are the four tools of monetary policy? b. Draw a diagram of the Federal Funds market and show changes as a result of the following (draw separate diagrams for each of these cases). i. Fed lowers the discount rate in. Fed raises the interest rate on excess reserves Wii. Fed raises the required reserve rino iv. The demand for federal funds shifts to the right v. The demand for federal funds shifts to the left c. What type of defensive open market operations has to be undertaken in the above cakes (v] and (v)