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Examine the balance sheet for a bank below: Assets Liabilities Reserves 1 000 000 Demand Deposits 3 000 000 Loans 1 600 000 Capital 800

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Examine the balance sheet for a bank below: Assets Liabilities Reserves 1 000 000 Demand Deposits 3 000 000 Loans 1 600 000 Capital 800 000 Buildings 1 200 000 If the desired reserve ratio changes to 15 percent and the bank were to loan out those excess reserves, what is the potential expansion in demand deposits (increase in MS) in the banking system? **You just need to put the number in your answer, no units or commas. Round your answer to the nearest whole number* * *

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