Question

select the supply of reserves, the upper end of the demand for reserves, lower end of the demand for reserves, or both the upper and lower end of the demand for reserves. then selected the direction of the shift. the federal reserve decreases the discount rate.

Explanation:

The discount rate forms the upper bound of the demand for reserves (since it's the rate banks pay to borrow from the Fed). A decrease in the discount rate reduces this upper bound, causing only the upper end of the demand for reserves to shift downward.

Answer:

The upper end of the Demand for Reserves shifts downward.