Lakerland has a reserve requirement of 20%. The central bank of Lakerland decides to sell 100 billion in government securities on the open market. 1. Calculate each of the following. a. The total change in reserves in the banking system. (1 point) b. The maximum possible change in the money supply. (1 point) 2. Create a money market graph to show the impact of the central bank's actions. Describe how nominal interest rates have changed. (3 points) 3. Based upon your graph in Question #2, what will happen to the short-run price level in the Lakerland economy? (1 point) 4. Kurt lives in Lakerland. His only source of income is his fixed income payments that comes from social security. As a result of the price level change that you determined in Question #3, will Kurt be better or worse off? (2 points)