Question 4 Assume Mexico has 1 billion pesos as its base money. The money suppy in Mexico is 4 billion pesos. a) Take whole banking system of Mexico as a single banking system. Assuming everyone in Mexico keep their money in banks, create the T-accound of that bank. Calculate the reserve ratio of that bank. b) Assume at a time of banking criese the reserve ratio of Mexican banks have risen around 10 to 50 %. Assume a value for the change in reserve ratio. Calculate the T-accound for Mexico, and then how much Mexico needs to increase its money reserve to keep money supply constant. I Question 5 Assume the value of exports of Philippines is 1 billion $, also assume citizens of Philippines working outside of Philippines are sending 1 billion $ to the Philippines, while the foreigners working in the Philippines sending 0.5 billion $. Also, assume foreigners in the Philippines own several factories, and natural resources in the Philippines, the value of all natural resources and factories owned is 200 billion $, and 1.5 billion $ flows out of the Philippines as the revenue as profit earned by foreign companies that are owning natural resources and factories in the Philippines. Also assume none of the companies owned by citizens of the Philippines, own natural resources or factory in any foreign country. Assume the Philippines has 2 billion $ current account deficit. Answer the questions accordingly. What is the value of imports of the Philippines? Change two variables within the current account in a way so that current account deficit will be closed. Show also matematically that with the new values Phillipinnes will have zero deficit