Use the supply and demand analysis of the market for reserves to visually illustrate and explain how the following scenarios may arise in equilibrium. [Note: most marks will be awarded on the basis of a correct explanation of the economic intuition of each scenario.] a) A decrease in reserve requirements changes borrowed reserves from positive to zero without changing the federal funds rate. [7 points] b) An increase in the reserve interest rate increases the interbank rate and makes it equal to the discount rate. [7 points] c) An infinitely small open market purchase decreases the federal funds rate but an equally small open market sale does not change federal funds rate. [7 points] d) A market panic leads to a deposit outflow from banks and increases the federal funds rate. [7 points] e) When the initial federal funds rate is lower than the discount rate, an open market purchase vis--vis the non-bank public changes neither the quantity of reserves nor the federal funds rate.