Suppose that currency in circulation is $500 billion, the amount of checkable deposits is $ 700 billion and excess reserves are $ 12 billion. (6 points) a. Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier. Make sure to show your work. b. Suppose the central bank conducts an unusually large open market purchase of bonds held by banks of $800 billion due to a sharp contraction in the economy. Suppose banks choose to hold all of these proceeds as excess reserves rather than loan them out due to fear of a financial crisis. Assuming that currency and deposits remain the same, what happens to the amount of excess reserves the excess reserve ratio, the money supply, and the money multiplier? Make sure to show your work For the toolbar, press ALT:F10 POR ALT.PNF 10 Mac), BIVS Paragraph Aria 1x 2 T .. . int . - 50 . 0