Question 4 (5 points) How the open market purchase affects the FED's balance sheet? both assets and liabilities decrease only assets decrease both assets and liabilities increase Oonly liabilities increase Question 5 (5 points) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement . the demand of reserves and causes the federal funds interest rate to ......, everything else held constant. O increases; fall O decreases; rise O decreases; fall increases; rise