In the nation of Orcam, people hold $4000 of currency and $40000 of demand deposits in the only bank, Orcbank. The reservedeposit ratio is 0.3.

Round answers to two places after the decimal when necessary.

c. Assume Orcams central bank wants to reduce the money supply by 15%.

To reduce the money supply by 15%, Orcams central bank should

government bonds in openmarket operations.

Assuming no change in the money multiplier, calculate, how much Orcam's central bank needs to transact.