Part II. Open End Questions Note: To get full credit, you need follow instructions of the question, and present correct and detailed (step-by-step) answer to the question. Question 1. Money Supply Calculation Suppose one economy starts with $1,000 as currency (cash) in the market. Calculate total money supply (M) in the following scenarios. (a) If all money is held as deposits (D) in banks. And banks have 100% of deposits as reserves (reserve ratio = 100%). Then how much is total money supply (M) in this case? (b) If the reserve ratio (rr) now equals 25%. Still no currency is kept by consumers (all money as deposits). Without considering consumers' decision, how much is the money multiplier (m) and total money supply (M) with the same initial deposit (D) $1,000 as above? (c) Now we add consumers into the story. Suppose consumers hold equal amounts of currency and demand deposits (C = D). Banks still have 25% reserve ratio (rr). If we have the monetary base (B) is $2,000. Then, what is the value of money multiplier (m) and total money supply (M)? Note: Here you need consider consumers' decision about cash% holding at hand (cr)