Consider an open market purchase by the Fed of $11 billion of Treasury bonds. What is the impact of the purchase on the bank from which the Fed bought the securities? The bank's securities (Click to select) by $11 billion and its reserves (Click to select) by $11 billion. Compute the impact on M1 assuming that: (1) the required reserve ratio is 5 percent; (2) the bank does not wish to hold excess reserves, and (3) the public does not wish to hold currency The simple deposit multiplier will be: The value of deposits (and Mt) will (Click to select) by $ billion Suppose the currency-to-deposit ratio is 0.2, the excess reserve to deposit ratio is 0.05, and the required reserve ratio is 0.05. Which will have a larger impact on the money multiplier: a rise of 0.05 in the currency ratio or in the excess reserve ratio? Instructions: Enter your response rounded to two decimal places. Initially, the money multiplier is m If the currency to deposit ratio rises to 0.25, the multiplier will be m= If, instead, the excess reserve to deposit ratio rises, the multiplier will be m= So, multiplier falls by more with the increase in the Click to select) Consider an open market purchase by the Fed of $11 billion of Treasury bonds. What is the impact of the purchase on the bank from which the Fed bought the securities? The bank's securities (Click to select) by $11 billion and its reserves (Click to select) by $11 billion. Compute the impact on M1 assuming that: (1) the required reserve ratio is 5 percent; (2) the bank does not wish to hold excess reserves, and (3) the public does not wish to hold currency The simple deposit multiplier will be: The value of deposits (and Mt) will (Click to select) by $ billion Suppose the currency-to-deposit ratio is 0.2, the excess reserve to deposit ratio is 0.05, and the required reserve ratio is 0.05. Which will have a larger impact on the money multiplier: a rise of 0.05 in the currency ratio or in the excess reserve ratio? Instructions: Enter your response rounded to two decimal places. Initially, the money multiplier is m If the currency to deposit ratio rises to 0.25, the multiplier will be m= If, instead, the excess reserve to deposit ratio rises, the multiplier will be m= So, multiplier falls by more with the increase in the Click to select)