Give answer of Q18 in 15 mins i will give you thumb up

The following graph shows a hypothetical demand function for federal funds. Currently, the total amount of reserves in the banking system is $50 billion, the discount rate is 3.5 percent, and interest on reserves equals IOR=1 percent. If demand for federal funds increases by $40 billion, the equilibrium fed funds rate will equal: a. FFR=3.00% b. FFR=3.50% C. FFR=4.00% d. FFR=4.50% e. None of the above