The graph above shows the commercial banks' demand function for federal funds. The guy who was constructing this graph forgot to incorporate the effects of discount rate and interest on reserves into the graph. The discount rate is 4.50 percent and the interest on reserves is 2.00 percent. Suppose that currently the total amount of reserves in the banking system is $500 billion. If the Fed reduces the amount of reserves to $200 billion through a contractionary monetary policy, the equilibrium federal funds rate will equal [ffr] percent.Group of answer choices

5.00

3.00

4.00

3.50

5.5

4.50