AFederal Funds Rate The graph to the right shows a rightward shift of the demand curve for reserves from R to that moves the equilibrium from point 1 to point 2, where the federal funds rate equals the discount rate 02 - g). According to this graph: O A. the federal funds rate cannot rise above id O B. borrowed reserves are equal to the distance between B and C OC. nonborrowed reserves are equal to the distance between A and B OD. All of the above are correct. o os sid 1 Red RE Quantity of Reserves A BC