Explain each question in detail, if possible with numerical values. (Fed-Federal Reserve)

1. The Fed buys $ 100 million of bonds from the public and also decreases the value of r. What will happen to the money supply?

2. The Fed has been discussing the possibility of paying interest rates on excess reserves. If this happened, what would happen to the level of e?

3. If the Fed sells $ 1 million of bonds and banks reduce their borrowing from the Fed by $ 1 million, predict what will happen to the money supply.

4. What prediction about the money supply would you make if expected inflation rises suddenly?

5. Predict what will happen to the money supply if there is a sharp increase in the currency ratio.