The FOMC has instructed the FRBNY Trading Desk to purchase $420 million in US Treasury securities. The Federal Reserve has currently set the reserve requirement at 10 percent of transaction deposits. Assume U.S. banks withdraw all excess reserves and give outloans a. Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply? b. What is the full effect of this purchase on bank deposits and the money supply of borrowers return only 90 percent of these funds to their banks in the form of transaction deposits? (For all requirements, enter your answers in billion. Round your final answers to 2 decimal places. (.., 5,500,000,000 should be entered os 5.50).) in bank deposits and money supply in bank deposits and money supply bilion billion