A balance sheet a commercial bank is shown. The rrr is 20%.

Suppose the bank lends out the maximum it can, whats the amount of money creation resulting from this specific banks action?

By how much would the money supply change as a result of the actions of the whole banking system? Make sure to explain the process of the money multiplier before you give a final numerical answer.

Explain the process of this monetary policy and conclude about what happens to the economy as a result (3 main measurements), dont forget to draw the needed graphs.

Assets Liabilities & OE Reserves $2,200 Checkable deposits $6,000 Securities 850 Capital stock 2,000 Loans 4300 Property 650