Consider an individual who immigrates to Canada and deposits \(\$ 300 0\) in Canadian currency into the Canadian banking system. Suppose all commercial banks have a target reserve ratio of 10 percent and individuals choose to hold cash equal to 10 percent of their bank deposits.

a. In the text, we showed that the eventual total change in deposits is equal to \(1 /(v+c)\) times the new deposit, where \(v\) is the target reserve ratio and \(c\) is the ratio of cash to deposits. What is the eventual total change in deposits in this case?

b. What is the eventual total change in reserves?

c. What is the eventual total change in loans?