Using the same ratios as in question 14 and again using T-accounts, explain what happens to reserves, the monetary base, and the money supply if the Fed buys $100 in securities from the public. What...

Using the same ratios as in question 14 and again using T-accounts, explain what happens to reserves, the monetary base, and the money supply if the Fed buys $100 in securities from the public.

What is defl ation, and why do policy makers have to be concerned about it?