1 Assume the required reserve ratio is 25% and the Open Market Committee of the FED sells $220 billion in bonds to the public. Assuming banks give out as many loans as possible, what is the total change in the money supply? If the M1 was originally $8500 billion, what is the new M1 (After the change)? You must show your work. 2. Assume the required reserve ratio is 15% and the Open Market Committee of the FED buys $330 billion in bonds from the public. Assuming banks give out as many loans as possible, what is the total change in the money supply? If the M1 was originally $9500 billion, what is the new M1 (After the change)? You must show your work. 3. Assume the required reserve ratio is 10% and the Open Market Committee of the FED sells $100 billion in bonds to the public. Assuming banks give out as many loans as possible, what is the total change in the money supply? If the M1 was originally $7500 billion, what is the new M1 (After the change) You must show your work. 4. Assume the required reserve ratio is 12.5% and the Open Market Committee of the FED buys $45 billion in bonds to the public. Assuming banks give out as many loans as possible, what is the total change in the money supply? If the M1 was originally $9500 billion, what is the new M1 (After the change)?You must show your work. Math Hint: When doing the problems do not add zeros to convert to billions. Instead use the numbers given and then add the word billion to your answer. For example, if you need to multiply $60 billion by 10 simply do: $60 billion X 10 = $600 billion.