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10,000 of new money is placed on deposit in the banking system with a reserve requirement of 10%. Three levels of deposits are sufficient, then

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10,000 of new money is placed on deposit in the banking system with a reserve requirement of 10%. Three levels of deposits are sufficient, then now totals of each column for an infinite series. Be sure to label each column. B. Then show a deposit expansion multiplier, as in class, using a new reserve requirement of your choosing (use a different color if possible) at could be adopted by the Federal Reserve Board (the FED) in order to fight overexpansion (inflation). C. Thoroughly explain all that happens and the final effect. & B. Illustrate deposit expansion multiplier: | C. Thoroughly explain all that happens & the final effect: Show before and after change in the reserve (4 pts) quirement) (6 pts) . (5 pts) What is the new reserve requirement? % What is the total potential deposits in the banking system before the change in the reserve requirement: What is the total potential deposits in the banking system after the change in the reserve requirement: E. Use a graph of the demand curve for loanable investment funds to illustrate the discount rate as a tool of the FED to fight overexpansion inflation). Illustrate and fully explain the use of the discount rate. 5 pts) Illustrate and fully explain in sentences the use of the discount rate: Demand graph for loanable funds

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