Please show all the steps and calculations 1. For the each of the following, use the supply and demand of reserves to make the necessary changes, describe the type of policy that the Fed would need to conduct [if any) and indicate what happens to the market (effective) federal funds rate. Unless specied, you can assume that starting FFR is between its upper and lower hounds. a. Banks decrease demand for reserves. The Fed decides not to react h. Banks decrease demand for reserves. The Fed decides to react to keep the federal funds rate at the target. c. Board of Governors eliminates reserve requirements and directs NY Fed to offset it with open market operations. d. FUMC lowers the target federal funds rate and NY Fed conducts necessary operations to achieve it You can assume that the starting FFR is sufficiently far from its upper hound and lower hound. e. Fed decides to lower discount rate below the current equilibrium federal fiulds rate. 2. Draw a federal fimds market depicting scenario when changing interest rate on reserves up or down has absolutely no effect on market federal funds rate