7. Suppose the required reserve ratio is 20% and banks lend all excess reserves. Complete the table. New Round Deposits New Reserves 1 $500.0 $100.0 2 $400.0 3 4 5 6 New Loans $400.0 Total Money Supply $500.0
7. Suppose the required reserve ratio is 20% and banks lend all excess reserves. Complete the table. New Round Deposits New Reserves 1 $500.0 $100.0 2 $400.0 3 4 5 6 New Loans $400.0 Total Money Supply $500.0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:7. Suppose the required reserve ratio is 20% and banks lend all excess reserves. Complete the table.
New
Round
Deposits
New
Reserves
1
$500.0
$100.0
2
$400.0
3
4
5
6
New Loans
$400.0
Total Money
Supply
$500.0
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