Part 7: Complete the statement below. An open market purchase leads the monetary base to (grow, contract), because the Federal Reserve is replacing (money, non-money assets) with (money, non-money assets) in the economy. Part 8: Suppose that the reserve requirement is 6.25%, and that depository institutions do not hold excess reserves. What is the value of the money multiplier? Part 9: Suppose that the reserve requirement is 6.25%, and that depository institutions do not hold excess reserves. When an open market purchase by the Federal Reserve increases the monetary base by $50 billion, by how much does the money supply increase? Part 10: Suppose that the reserve requirement is 12.5%, and that depository institutions do not hold excess reserves. What is the value of the money multiplier? Part 11: Suppose that the reserve requirement is 12.5%, and that depository institutions do not hold excess reserves. When an open market purchase by the Federal Reserve increases the monetary base by $50 billion, by how much does the money supply increase? Part 12: Complete the statement below. Open Market Purchases have a (smaller, larger) impact on the money supply when the money multiplier is greater.