Suppose that the Bank of Korea has purchased bonds of 2000 from the Kakao Bank.

Now suppose that under the required reserve ratio of 2%, commerical banks including Kakao Bank use their all of their excess reserves to make a loan and borrowers deposit to the banks.

7. Compute the money supply from the Bank of Korea's open market purchase.

8. Compute the monetary base of the Bank of

Korea from its open market purchase.

9. If the required reserve ratio changes to 5%,

while others remain constant, how does the money supply change? By how much? What is the new money multiplier?

Suppose that the Bank of Korea has purchased bonds of 2000 from the Kakao Bank. Now suppose that under the required reserve ratio of 2%, commerical banks including Kakao Bank use their all of their excess reserves to make a loan and borrowers deposit to the banks. 7. Compute the money supply from the Bank of Korea's open market purchase. (4 pt) 8. Compute the monetary base of the Bank of Korea from its open market purchase. (4 pt) 9. If the required reserve ratio changes to 5%, while others remain constant, how does the money supply change? By how much? What is the new money multiplier? (7 pt) Suppose that the Bank of Korea has purchased bonds of 2000 from the Kakao Bank. Now suppose that under the required reserve ratio of 2%, commerical banks including Kakao Bank use their all of their excess reserves to make a loan and borrowers deposit to the banks. 7. Compute the money supply from the Bank of Korea's open market purchase. (4 pt) 8. Compute the monetary base of the Bank of Korea from its open market purchase. (4 pt) 9. If the required reserve ratio changes to 5%, while others remain constant, how does the money supply change? By how much? What is the new money multiplier? (7 pt)