Suppose the Fed conducts an open market sale. Such an action would V be called for if the economy faced the possibility of ination The Fed's open market sale impacts the federal funds market shown on the right by shifting the supply of reserves. In the diagram on the right: 1.) Use the line drawing tool to indicate the appropriate shift of reserves. 2.) Use the point drawing tool to indicate the new equilibrium in the market. Carefully follow the instructions above and only draw the required objects. The Federal Funds Market Supply of reserves 9,9 Federal funds rate El Demand for reserves R Quantity of reserves