Answer:
c. $50 billion; 4
Explanation:
On the basis of Question provided in ask for details:
Solution is
Monetary multiplier = 1/reserve ratio
Monetary multiplier = 1/0.2 = 5
If the Fed increased the reserve requirement from 20 percent to 25 percent
New reserve based on 25 % requirement =(200 billion/20%)/25%= 250 billion
Deficiency of reserves = 250 billion - 200 billion = 50 billion
Monetary multiplier = 1/reserve ratio
Monetary multiplier = 1/0.25 = 4