Scenario: The Fed raises the target federal funds rate. Determine the impact on the reserve demand curve, reserve supply curve, federal funds rate, borrowed reserves, and nonborrowed reserves. . Reserve demand curve shifts left . Reserve supply curve remain unchanged . Federal funds rate . if discount rate initially above federal funds rate [ Select ] o if discount rate initially is at the federal funds rate [ Select ] V . Borrowed reserves o if discount rate initially above federal funds rate increase if discount rate initially is at the federal funds.rate remain unchanged . Nonborrowed reserves . if discount rate initially above federal funds rate decrease . if discount rate initially is at the federal funds rate remain unchanged