[Study the Mathematical Note on pp. 586–587 to work this problem.] In problem 3, the banks have no excess reserves. Suppose that the Bank of Nocoin, the central bank, decreases bank reserves by $0.5...

[Study the Mathematical Note on pp. 586–587 to work this problem.] In problem 3, the banks have no excess reserves. Suppose that the Bank of Nocoin, the central bank, decreases bank reserves by $0.5 billion.

a. Calculate the money multiplier.

b. What happens to the quantity of money?

c. What happens to the quantity of deposits?

d. What happens to the quantity of currency?