4. Assume the US Consolidated Bank Balance Sheet has the following major balance sheet items (billions S) - Assets include Reserves at the Fed 58,000 and earning assets of (1) Treasury bonds and bills $12,000 (2) Loans $80,000 Total Assets equal $100,000. The only liability is demand deposits. The required reserve requirement r-.08. The Fed Reserve balance sheet has Cash of $8,000 as an asset and Member Bank Deposits of $8,000 as a liability, (a) Set up the initial Consolidated Bank Balance Sheet and the Fed's initial balance sheet. (b) The Open Market Committee decides to purchase $4,000 in Treasury Securities from the Fed's member banks Show the short-run and then the long-run effects of this transaction on the Consolidated Bank Balance Sheet and on the Feds balance sheet. Assume that banks adjust their holding of loans but do not make any further changes in their holdings of Treasury Securities. Is this move expansionary or contractionary? Why