1. Words only (no need for graph): Will the Central Bank aim to increase or decrease the federal fund rate? Explain
2. If the demand for reserves intersects their supply at the vertical portion, show how the Central Bank can achieve (or cannot achieve) its goal with regard the interest rate, using the open market sale. Explain
3. If the demand for reserves intersects their supply at the horizontal portion, show how the Central Bank can achieve (or cannot achieve) its goal with regard the interest rate, using the open market purchase. Explain