Consider an open market purchase by the Fed of $8 bilion of Treasury bonds. What is the impact of the purchase on the bank from which the Fed bought the securities? The bank's securities fall by $8 billion and its reserves rise by $8 billion Compute the impact on M1 assuming that: (1) the required reserve ratio is 10 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 MI) will rise by $ billion