Question 1 2 pts 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% Fed Funds Rate 2.00% 1.50% 1.00% 0.50% 0.00% 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Bank Reserves ($Billion) Consider the above graph that shows demand for excess reserves by the banking system as a whole. The discount rate is 4.0 percent. Currently banks as a whole 3/4/2021 rk 9 (ECN 1B Winter 2021) https://canvas. ucdavis. edu/courses/534369/quizzes/11 are holding reserve in the amount of $50 billion. This means that the equilibrium fed funds rate is percent. Suppose that demand for reserves by the banking system increases by $10 billion (banks collectively want to hold $10 billion more reserves). In that case, the equilibrium fed funds rate will increase to percent. Suppose that demand for excess reserves by the banking system increases by another $20 billion (now demand has increased by a total of $30 billion). In that case, the equilibrium fed funds rate will increase to percent