Question: please help me to solve a to e with explanation. 1. [10 points in total] For each of the following situations, determine whether the money

please help me to solve a to e with explanation.

1. [10 points in total] For each of the following situations, determine whether the money supply will increase, decrease, or stay the same. Please make sure that you explain your answers. a. Depositors become concerned about the safety of depository institution. (2 point) b. The Bank of Canada lowers the required reserve ratio. (2 point) c. The economy enters a recession and banks have a hard time find creditworthy borrowers. (2 points) d. Bank of Canada sells $100 million of bonds to First National Bank. (2 points) e. ATM becomes the trend. (2 points)

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