Assume that the reserve requirements are 25% and banks hold no excess reserves. points) a. Assume that Kim deposits $100 of cash from her pocket into her checking account Calculate each of the following. i. The maximum dollar amount the commercial bank can initially lend ii. The maximum total change in demand deposits in the banking system iii. The maximum change in the money supply b. Assume that the Federal Reserve buys $5 million in government bonds on the ope market. As a result of the open market purchase, calculate the maximum increase in th money supply in the banking system. c. Given the increase in the money supply in part (b), what happens to real wages in the short run? Explain