Answer each of the following separate parts. You are required to draw a graph or a diagram for each part. (a) Suppose you deposit some money into bank A. The required reserve ratio is 10%.
Draw a diagram to illustrate how this initial deposit would increase the money supply for the entire economy. The diagram should illustrate at least 3 rounds of deposits. (You should draw a diagram, not a table)

(b) Consumer confidence increases, and the economy is overheating. To prevent the economy from overheating, the government conducts a contractionary fiscal policy. Draw an AD-AS graph to show the impacts of the contractionary fiscal policy.

(c) The Federal Reserve wants to increase money supply by conducting an open market operation. Draw a diagram to illustrate the open market operation. Your diagram should also show interbank loans.

(d) The government wants to implement a supply-side fiscal policy. Draw an AD-AS graph to show the effects of a supply-side fiscal policy.