The following equation is used to model money supply under fractional-reserve banking: M = cr+1/ cr+rr x B i) Identify the variables within the equation  ii) Explain how the exogenous variables within the equation influence money supply and cause it to change.  iii) Suppose the banks in an economy have a reserve-deposit ratio of 12 percent and the currency-deposit ratio is 25 percent. Also, the Central Bank increases the monetary base by $400 through open market operations, how would the money supply change?

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