Using the simple model of bank expansion in which the base multiplier is 1/IR, do the following problems. Fill in the final position in which the commercial banking system reaches equilibrium. Assume that the initial equilibrium position for all problems is: Fed CB GS 1400 DFR 1400 DFR 1400 DD 14,000 GD 0 LGI 11,800 GD 0 GS 800 A. The Administration runs a $400 deficit and finances this amount by borrowing from the Fed. The funds are used to purchase private goods and services. Fed CB GS DFR DER DD GD LGI GD GS a. Explain in detail what occurred in problem 1 with emphasis on reserve positions and impacts on money supply, credit and implications for inflation. Using the simple model of bank expansion in which the base multiplier is 1/IR, do the following problems. Fill in the final position in which the commercial banking system reaches equilibrium. Assume that the initial equilibrium position for all problems is: Fed CB GS 1400 DFR 1400 DFR 1400 DD 14,000 GD 0 LGI 11,800 GD 0 GS 800 A. The Administration runs a $400 deficit and finances this amount by borrowing from the Fed. The funds are used to purchase private goods and services. Fed CB GS DFR DER DD GD LGI GD GS a. Explain in detail what occurred in problem 1 with emphasis on reserve positions and impacts on money supply, credit and implications for inflation