Consider a fractional-reserve banking system with a reserve ratio of 8% and an initial deposit of $12,000. Use T-accounts to show the effect of the next 2 rounds of deposits. How large is the stock of money at the end of the third round of deposits? How large would the stock of money be once multiple deposit creation has run its course? Suppose there is a cash drain. What would happen to the stock of money after an initial deposit of $12,000? Explain your