Limited reserves graph: an open-market purchase lowers the policy rate

An example figure from the Money Markets generator.

Market for reserves graph with no numbers on the axes, Policy rate up the side and Quantity of reserves along the bottom: a demand for reserves curve DR (blue) flat at the top, sloping down, then flat along the bottom, a vertical supply of reserves curve SR₁ (red) crossing its sloping part and a second vertical curve SR₂ to the right, also on the slope, two arrows pointing right from SR₁ to SR₂, dashed lines across to PR₁ and the lower PR₂ on the vertical axis, and Q₁ and Q₂ under the two supply curves — The market for reserves with limited reserves: the vertical supply of reserves crosses the sloping part of the demand for reserves DR. An open-market purchase adds reserves, shifting supply right from SR₁ to SR₂. The policy rate falls from PR₁ to PR₂ and the quantity of reserves rises from Q₁ to Q₂.

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