Question: *****Please label all figures / graphs and upload the 4 parts SEPARATELY . (typed answers preferred)***** (1) In November 2020, the Central Bank of Mountville
*****Please label all figures / graphs and upload the 4 parts SEPARATELY. (typed answers preferred)*****

(1) In November 2020, the Central Bank of Mountville reduced the target overnight rate from 4% to 2%. Assume that the NBR is 1 billion M33 and that before the change, the intersection of supply and demand has been on the vertical portion of the Reserves Supply curve. Answer the following questions. (i) Use the Reserves Market model to illustrate this change. (ii) Show the impact of this policy on the Money Market. (iii) What is the impact of this change on the Goods Market, if the policy is successil? (iv) What is the impact of this change on the Goods Market, if the policy is unsuccessful
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