b) Assume banks in the country hold no excess reserves and the public's
holding of currency is constant. The required reserve ratio is 20%. The
central bank of the country buys $125 billion in bonds from the nonbank
public.
i) By how much will the monetary base of the country change?
ii) Calculate the change in the amount of loans in the banking system in
the country
iii) Calculate the change in the money supply in the country