{Monetary Policy Implementation) Scenario in year 2025: The ination rate has been averaging at b.3959 for the last sis: months. Quarterly real GDP growth has been slowing down from 3% last year to (12% this year. Reserves supply is ample in the banking system, and there is no Overnight Reverse Repurchase offering (Meaning, you don't have to worry about the UN RRP and GEE hanks for now.) The economy needs at least [1.5% interest rate movement for any impact to take place. Currently, the Federal Funds Rate target range is 2.?5-3.{l%. Effective FFR sits at around 231-13394: on the daily basis. IURE is at 2.3%. Short-term Treasury securities yield is at about 2.?3-2.33 "/3. Discount window rate is at 3.%. (a) {3 points) What is the Federal Reserve objective and how is this scenario a concern for the Federal Reserve? {b} {5 points) lGiven the scenario, which direction must the interest rate be adjusted in order to achieve the Federal Reserve objective and why? What is the announcement by the Federal Reserve regarding its Federal Funds Rate target range? Be specic both qualitatively and numerically. {c} {5 points} Given the scenario, what would the Federal Reserve need to do in the open market operations? Explain the entire process. Be specic to the pricer'interest rate of the relevant assets used in the open market operations. {d} {2 points) How would the Federal Reserve's balance sheet change immediately after the open market operations in this scenario? {No need to draw the balance sheet, explain the directions of changes in the balance sheet} {e} {2 points] How would the bank's balance sheet change immediately after the open market operations in this scenario? [No need to draw the balance sheet, explain the directions of changes in the balance sheet.) { {8 points] Are the actions by the Federal Reserve in the open market operations sufcient in adjusting the Federal Funds Rate? Explain why, and, if needed, prescribe relevant policies to establish the appropriate oor and ceiling in numbers. {g} {5 points) How would the monetary policy that you prescribed transmit through the asset price channel? {h} {3 points) In addition, if there is an overnight reverse repurchase agreement offered at 235% to non- depository banks, how would this change the prescribed policy?I {i} {5 points) How would your policy prescription be different if the Reserve Supply is limited? Would open market operations be able to adjust the Federal Funds Rate? Explain why may they be different in action