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Examine the balance sheet for a bank below: Assets Liabilities Reserves 400 000 Demand Deposits 3 103 500 Loans 2 000 000 Capital 1 250

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Examine the balance sheet for a bank below: Assets Liabilities Reserves 400 000 Demand Deposits 3 103 500 Loans 2 000 000 Capital 1 250 000 Buildings 1 953 500 If the desired reserve ratio changes to 10 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** *

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