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how to calculate the highlighted numbers? please show the calculation. thank you! b. Assumptions: (1) The initial open market operation increases reserves by $100; (2)

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how to calculate the highlighted numbers? please show the calculation. thank you!

b. Assumptions: (1) The initial open market operation increases reserves by $100; (2) the required reserve ratio is 0.20; (3) no currency is held by the nonbank public; (4) no excess reserves are held by banks. Fill in the Table 1 below for deposit expansion. (16 marks) Step Excess Reserves Table 1: Deposit Expansion Total Money Money Created Created 100 100 180 80 Required Reserves 1 20 2 16 WN 3 244 64 12.8 4 295.20 51.20 10.24 500 0 0 100 (16 marks)

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