Suppose that in an assumed economy people hold cash at a rate of 20 percent of deposits, the reserve requirement is 20 percent of deposits, and monetary base is $6,000 billion. 1. What is the money multiplier? 2. What is the money supply? 3. What should the central bank do in the open market if it wants to increase the money supply by $40 billion? Illustrate graphically. 4. How should the central bank change the reserve to deposit ratio to increase the money supply by $40 billion? Illustrate graphically.