Question 3 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) Let us continue from Question 2. Currently the supply of reserves in the banking system is $130 billion. The Fed starts implementing a new policy. It begins paying interest on reserves. It sets the interest on reserves at 1.00 percent. This causes the equilibrium federal funds rate to change to percent. Now, if the increases the supply of money by $10 billion, the equilibrium fed funds rate will equal percent