Below is the T-accounts for the Central Bank of Atlantis, and the Commercial Bank of Atlantis, which is the only commercial bank in Atlantis. In Atlantis, all financial transactions occur within the banking system: no one holds currency. The required reserve ratio imposed by the central bank is 15% of deposits. All amounts are in Atlantis Dollars ($).

Below is the T-accounts for the Central Bank of Atlantis, and the Commercial Bank of Atlantis, which is the only commercial bank in Atlantis. In Atlantis, all financial transactions occur within the banking system: no one holds currency. The required reserve ratio imposed by the central bank is 15% of deposits. All amounts are in Atlantis Dollars ($). Central Bank of Atlantis Commercial Bank of Atlantis Assets Liabilities Treasury 40,000 Reserves 40,000 bills Assets Liabilities Required 30,000 Deposits 200,000 reserves Loans 150,000 Capital 40,000 Treasury 60,000 bills Total 240,000 240,000 Total 40,000 40,000 Suppose the central bank of Atlantis purchases $4,000 of treasury bills from the commercial bank. a. (4 points) Provide a T-account for both the commercial bank and the central bank showing the immediate effect of this transaction. Make sure to show the difference between required and excess reserves for the commercial bank. b. (3 points) Provide a T-account for the commercial bank once the commercial bank lends out its excess reserves after the final round of the money multiplier process. C. (4 points) What happens to the money supply when the central bank purchases $4,000 of Treasury bills from the commercial bank? d. (4 points) What will happen to GDP and the price level in Atlantis in the short run and in the long run? Explain your