Question: Question 13 (6 points) The graph shows the demand curve for reserves in the market for bank reserves. If the quantity of reserves supplied is

 Question 13 (6 points) The graph shows the demand curve for

Question 13 (6 points) The graph shows the demand curve for reserves in the market for bank reserves. If the quantity of reserves supplied is $40 billion and the Fed wants to set the federal funds rate at 1 percent a year, by how much should the Fed need to increase or decrease the quantity of reserves supplied? (For example: If the Fed should increase the quantity of reserves supplied by $20 billion, write 20. If the Fed should decrease the quantity of reserves supplied by $20 billion, write -20. If the Fed should not do anything, write 0.) Federal funds rate (percent per year) 8 6- 8 5- 3 MacBook Pro 2

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