a) Assuming that that people hold no currency, what is the money supply in this economy? Now suppose that the central bank changes the reserve requirement to 15%, and banks want to hold minimum amount of reserves they are allowed to. b) Assuming that people still hold no currency, what is the change in the money supply? What is the new amount of money supply?

Assets Liabilities Reserves $90 million Deposits $900 million Loans $810 million a) Assuming that that people hold no currency, what is the money supply in this economy? Now suppose that the central bank changes the reserve requirement to 15%, and banks want to hold minimum amount of reserves they are allowed to. b) Assuming that people still hold no currency, what is the change in the money supply? What is the new amount of money supply