Can someone do c-e please? The following is the bank balance sheet for JMH Bank.AssetsReservesGovernment SecuritiesLoansLiabilities$20,000 Demand Deposits$15,000$65,000$100,000The central bank buys $3,000 worth of securities (bonds) from JMH Bank. The requiredreserve ratio is 20%.(a) Immediately after the central bank's open-market bond purchase, will JMH Bank'sliabilities increase, decrease, or stay the same? Explain.(b) By what amount will JMH Bank's reserves change after the central bank's open-marketbond purchase and before any new loans are made? Explain.(c) As a result of the central bank's purchase of bonds, what is the dollar value of themaximum amount of new loans JMH Bank can make? Exp(d) Calculate the maximum amount by which the money supply can change throughout thefractional banking system if JMH loans out the maximum amount from part (c). Showyour work.(e) How will the change in the money supply in part (d) affect consumption spending andreal GDP in the short run? Explain.

When the central bank buys $3000 of bonds from the bank, the deposit side i.e. the liabilities of…

(c) As a result of the central bank's purchase of bonds, what is the dollar value of the maximum amount of new loans JMH Bank can make? Explain. (d) Calculate the maximum amount by which the money supply can change throughout the fractional banking system if JMH loans out the maximum amount from part (c). Show your work. (e) How will the change in the money supply in part (d) affect consumption spending and real GDP in the short run? Explain.