Assume that the banking system has total reserves of $234 billion. Assume also that required reserves are 18 percent and that banks do not hold any excess reserves and households hold no currency. What is the money multiplier? Hint Assume that the banking system has total reserves of $448 billion. Assume also that required reserves are 32 percent and that banks do not hold any excess reserves and households hold no currency. What is the size of the M1 money supply? Hint Assume that the banking system has total reserves of $182 billion. Assume also that required reserves are 14 percent and that banks do not hold any excess reserves and households hold no currency. Now suppose that the Fed decreased the required reserves to 11.2. What is the new multiplier? Hint