Assume that the following data describe the condition of the banking system:

Total reserves $100 billion

Transaction deposits $800 billion

Cash held by public $400 billion

Reserve requirement 0.10

(a)How large is the money supply (M1)?

(b)How large are required reserves?

(c)How large are excess reserves?

(d)What is the money multiplier?

(e)By how much could the banks increase their lending activity