7. Recall the description of the money multiplier given on pg. 333 of C&T. The money multiplier given relies on several key assumptions. One assumption is that banks do not hold any excess re- serves. To be more specific they will only hold reserves at the minimum reserve requirement, without any excess. Describe what you think will happen if some banks held on to some excess reserves? Will the change in money supply be less than, greater than, or be unaffected for a change in reserves? Another implicit assumption is that individuals do not hold on to any cash and keep all currency in their deposit account at banks. What if individuals held on to some cash? Will the change in money supply be less than, greater than, or be unaffected for a change in reserves? From C&T Ch. 15 complete the following questions