RS 10 8 Interest rate (percent per year) 6 4 2 RD 0 100 200 300 400 500 600 Reserves on deposit at the Fed (billions of dollars) 8. Using the above graph, if the Fed undertakes an open market purchase of government securities that changes the quantities of reserves by $100 billion, a. Will the interest rate increase or decrease? b. What will the new interest rate be