an average peron deposits $95 out of every $100 they have into their bank accounts, keeping the rest as cash in their wallets. The central bank has instructed the commercial banks to hold 3% of all bank deposits as reserves.

• Estimate the extended money multiplier

• Assume the average person puts in $3,000 into their bank accounts. Based on the extended money multiplier calculated in part
• calculate the total amount which the money supply in the banking system will eventually increase to. Show all steps involved in the calculation.