2. Macrobank has deposits (checking accounts) of $1,000,000; cash reserves of $200,000; loans of $750,000; and $50,000 of treasury bonds. Required reserves are 10%. a. Construct Macrobank's balance sheet. b. What is Macrobank's reserve ratio? How much does it hold in required reserves and how much does it hold in excess reserves? c. Jerome deposits $100,000 cash into his account at Macrobank. If Macrobank continues its current fractional reserve practice, what value in new loans will it make immediately after his deposit? Construct a new balance sheet to reflect the new values of assets and liabilities for the bank. You can either update the values of all the items in the bank's balance sheet or just show the changes on each side of the balance sheet. d. Given the current reserve ratio, by how much would total deposits in the economy increase (including Jerome's initial deposit), after this new round of loans is deposited and lent out repeatedly throughout the banking system (the money multiplier process)? What is the value of the money multiplier? e. By how much would the M1 money supply increase after this deposit? f. Return to part a, only now assume that Macrobank decides to no longer hold excess reserves and lends out this money instead. Construct a new balance sheet. What is the value of the money multiplier now