If the initial cash in the US economy is $1 Trillion, individuals tend to keep onesixth of their income as cash and deposit the rest, and banks can lend 90 percent of the deposit and reserve the remaining, then: a) What is the total money supply (M1) in this economy? (5 points) b) If the Federal Reserve wants to expand the money supply by five percent (because of the current crisis), what types of policies can she use, and how? Explain and support your claim using computation if it is required. (10 points) c) Let’s say, after implementing these policies, the economy only increased by two percent, explain why this happened. (5 points) d) Now the government wants to stimulate the economy by ten more percent after the failure of the previous attempt by the Fed (the size of the economy is $20 trillion, and it is predicted that it will be contracted by at least $2 trillion by the end of this year), what can she do? Explain the possible policies that the Gov can implement in detail, and use computation if necessary. (10 points)