To combat an imminent recession, the RBA decides to lower the cash rate. To do so, it can use one of the following three monetary policy tools:

(a) the reserve requirement; (b) open market operations; (c) the discount rate.

Explain how the RBA uses each of the tool to lower the cash rate, and also explain what happens to borrowed reserves, and nonborrowed reserves, holding everything else constant. Use graphs of the market for reserves to support each of your answers.