4. The monetary multiplier Suppose that Paolo makes a new cash deposit of $20,000 at his bank. Suppose that the bank is required only to keep new cash reserves equal to 20%. Then the maximum amount Paolo's deposit willincrease the money supply is $ . Which of the following assumptions must hold to ensure that the money creation process initiated by Paolo's deposit reaches its potential? Check all that apply. All banks in the banking system lend all of their excess reserves. Some borrowers spend only a fraction of the borrowed funds. Some borrowers wait a few months before they begin to spend the borrowed funds. All borrowers quickly spend all of their newly acquired funds