please give a clear explanation for question a)

and step by step for question b). thank you!

a. The Fed decides to increase the money supply. What would be the appropriate open market operation? (9 marks) b. Assumptions: (1) The initial open market operation increases reserves by $100; (2) the required reserve ratio is 0.20; (3) no currency is held by the nonbank public; (4) no excess reserves are held by banks. Fill in the Table 1 below for deposit expansion. (16 marks) Table 1: Deposit Expansion Step Total Created Money Money Created Excess Reserves Required Reserves 1 2 3 4 500 0 0 100 (16 marks) a. The Fed decides to increase the money supply. What would be the appropriate open market operation? (9 marks) b. Assumptions: (1) The initial open market operation increases reserves by $100; (2) the required reserve ratio is 0.20; (3) no currency is held by the nonbank public; (4) no excess reserves are held by banks. Fill in the Table 1 below for deposit expansion. (16 marks) Table 1: Deposit Expansion Step Total Created Money Money Created Excess Reserves Required Reserves 1 2 3 4 500 0 0 100 (16 marks)