4, Monetary Policy (20 pts) For the following situations describe how the Federal reserve would implement monetary policy. For parts (a) and (b) draw a gure of the reserve market and explain how it is implemented (you do not need to be exact in quantities). (a) A 0.75 bp decrease in the federal funds rate under the limited reserves framework (So standard framework before) (b) A 0.75 bp increase in the federal funds rate under the ample reserves framework (c) How would part (a) impact interest rates, ination in the long run, output and employment (d) How would part (b) impact interest rates, ination in the long run, output and employment