Fed Policy, and the Reserve Market(25 pts) For parts (a) and (b) of this question you may assume that the federal reserve is operating in the traditional limited reserves framework (You can include the IORB to create the lower bound but otherwise the supply of reserves operates in the elastic portion of the demand curve). For parts (c)-(e) we can assume the federal reserve is operating in the ample reserves framework. (c) (6 pts) Suppose you are in an identical situation to part (b) but this time are operating in the ample reserves framework. Show via a graph and explain how the federal reserve would implement the policy you would suggest in part (b) in this framework. (d) (7 pts) Explain how it's possible for the Federal Funds rate to be higher than the IORB empirically in the data under the ample reserves framework? What must be true about what is occuring in the reserves market (show via a graph) Fed Policy, and the Reserve Market(25 pts) For parts (a) and (b) of this question you may assume that the federal reserve is operating in the traditional limited reserves framework (You can include the IORB to create the lower bound but otherwise the supply of reserves operates in the elastic portion of the demand curve). For parts (c)-(e) we can assume the federal reserve is operating in the ample reserves framework. (c) (6 pts) Suppose you are in an identical situation to part (b) but this time are operating in the ample reserves framework. Show via a graph and explain how the federal reserve would implement the policy you would suggest in part (b) in this framework. (d) (7 pts) Explain how it's possible for the Federal Funds rate to be higher than the IORB empirically in the data under the ample reserves framework? What must be true about what is occuring in the reserves market (show via a graph)