18) The following T account describes the entire commercial banking system in the country of Macroeconomia, use to answer the questions below. The country's monetary authority uses a US style federal funds rate (FFR). Assets (millions of $'s) Liabilities (millions of S's) Required Reserves $8000 Demand Deposits $80000 Excess Reserves SO Bank Capital $20000 Commercial Loans $92000 a. What is the value of MI and its' multiplier? b. If the monetary authority buys $20 million of worth of government debt from the public, what happens to the monetary base and MI? c. Given the purchase in b. above, assuming that the currency-to-deposit ratio is constant, what is the public holding of currency, monetary base and MI? d. Plot the impact of the government debt purchase on FFR in a graph with the FFR on the vertical and reserves on the horizontal e. Suppose the yield curve was upward sloping before the government debt purchase, how would it change after the purchase? 18) The following T account describes the entire commercial banking system in the country of Macroeconomia, use to answer the questions below. The country's monetary authority uses a US style federal funds rate (FFR). Assets (millions of $'s) Liabilities (millions of S's) Required Reserves $8000 Demand Deposits $80000 Excess Reserves SO Bank Capital $20000 Commercial Loans $92000 a. What is the value of MI and its' multiplier? b. If the monetary authority buys $20 million of worth of government debt from the public, what happens to the monetary base and MI? c. Given the purchase in b. above, assuming that the currency-to-deposit ratio is constant, what is the public holding of currency, monetary base and MI? d. Plot the impact of the government debt purchase on FFR in a graph with the FFR on the vertical and reserves on the horizontal e. Suppose the yield curve was upward sloping before the government debt purchase, how would it change after the purchase