1. Assume the required reserve ratio is 14%, the amount of deposits in a bank are $5,169, and the bank is holding $2,475 in reserves. What is the maximum amount of additional loans this bank can make? Please round to two decimal places and do not include the dollar sign. For example, if your answer is $5678.977 you would enter 5678.98.

2. If the required reserve ratio is 18% and you deposit $265 of cash into a bank, what is the maximum amount the money supply could increase by? Please round to two decimal places and do not include the dollar sign. For example, if your answer is $5678.977 you would enter 5678.98.

3. If the required reserve ratio is 18% and you deposit $232 of cash into a bank, what is the maximum amount the total deposits could increase by? Please round to two decimal places and do not include the dollar sign. For example, if your answer is $5678.977 you would enter 5678.98.

4. If the MPC is 0.79 and government purchases decreases by $2,624, holding all else constant, real GDP will change by _____ according to the multiplier effect (assuming no crowding out). Please round to 2 decimal places. Be sure to include a negative sign (-) if it is a decrease and do not include a dollar sign ($) when answering.

5. If the MPC is 0.85 and taxes decrease by $5,499, holding all else constant, real GDP will change by _____ according to the multiplier effect. Please round to 2 decimal places. Be sure to include a negative sign (-) if it is a decrease and do not include a dollar sign ($) when answering.