Consider an open market purchase by the Fed of $8 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 fall by $8 billion and its reserves rise by $8 billion Compute the impact on Mi 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 Mi) will rise by $ billion