. Suppose we have an economy in which banks wish to hold no excess reserves, the required reserve ratio is .1, there is only one kind of deposit, and there is no cash drain. (a) The central bank needs to increase M1 by $100 billion. Explain how it can do this. (b) Suppose in addition to required reserves, the banks which like now to hold a very large amount of excess reserves as a ratio of deposits (say 25 to one). How will this affect your answer