A. complete the table below. round change in deposits change in reserves change in loans first $0 $0 $1000 second third fourth fifth
b. after 5 rounds, what is the total change in deposits as a result of the single new deposit?
c. what is the eventual total change in deposits?
d. what is the eventual total change in the money supply?
e. assume that the federal reserve implements a new law that sets a required reserve ratio equal to 30%. how would this have changed your answers to parts c and
d.
