The table below depicts various levels of reserve requirements. Reserve Requirements Reserve Requirement (percent) Money Multiplier 5% 20 Change in Money Supply after Deposit (dollars) $ 10 40 60 10 2.5 1.67 100 nstructions: Round your answers to two decimal places. Suppose that Frank deposits $1,000 of currency into his checking account. b. Complete the "Change in Money Supply after Deposit" column in the table above. Assume that all banks in the system loan out all excess reserves.

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The table below depicts various levels of reserve requirements.
Reserve Requirements
Reserve Requirement
(percent)
Money Multiplier
5%
20
Change in Money Supply after
Deposit (dollars)
$
10
40
60
10
2.5
1.67
100
nstructions: Round your answers to two decimal places.
Suppose that Frank deposits $1,000 of currency into his checking account.
b. Complete the "Change in Money Supply after Deposit" column in the table
above. Assume that all banks in the system loan out all excess reserves.
Transcribed Image Text:The table below depicts various levels of reserve requirements. Reserve Requirements Reserve Requirement (percent) Money Multiplier 5% 20 Change in Money Supply after Deposit (dollars) $ 10 40 60 10 2.5 1.67 100 nstructions: Round your answers to two decimal places. Suppose that Frank deposits $1,000 of currency into his checking account. b. Complete the "Change in Money Supply after Deposit" column in the table above. Assume that all banks in the system loan out all excess reserves.
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