If Ra = 240- 30 i given the information above, what is the market clearing federal funds rate? Assume that this is the target for the federal funds rate. Show

all work.NOTE: To calculate the market clearing federal funds rate, you first need R,. Rg is made up of required reserves and excess reserves. Here ER=0 so to find R, take the value for rr/D and multiply it by the value for D. Then you will be able to solve for the market clearing federal funds rate. In the space on your exam sheet, draw a reserve market diagram depicting exactlywhat is going on here! Label the equilibrium point as point A.