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3. Now assume that the current bank balance sheet for the Bank of Macropomia is shown be- low: Assets Liabilities Reserves: $4,000 Deposits: $20,000 Loans:

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3. Now assume that the current bank balance sheet for the Bank of Macropomia is shown be- low: Assets Liabilities Reserves: $4,000 Deposits: $20,000 Loans: $16,000 Assume that the reserve requirement is currently 20%. What is the maximum amount total amount of new money that might be created if Mrs. Gonzalez deposits $1000 in the bank? (5 points: 3 for correct calculation; 2 for showing your work)

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