Show the changes to the T-accounts for the Federal Reserve
and for commercial banks when the Federal Reserve buys
$50 million in U.S. Treasury bills. If the public holds a
fixed amount of currency (so that all loans create an equal
amount of deposits in the banking system), the minimum
reserve ratio is 10%, and banks hold no excess reserves, by
how much will deposits in the commercial banks change?
By how much will the money supply change? Show the
final changes to the T-account for commercial banks when
the money supply changes by this amount.