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* Round to 2 decimal places * 1 ) If there are no excess reserves, what is the Required Reserve Ratio ( RR ) 2

*Round to 2 decimal places*
1) If there are no excess reserves, what is the Required Reserve Ratio (RR)
2)Based on the RR, what is the deposit multiplier?
3) The multiplier can be interpreted to mean a $1 increase in deposits will lead to a $_______
change in the M1 money supply.
4)Based on the deposit multiplier, what will the change in the M1 money supply be?
5) What is the increase in the M1 money supply if Deposits represents the initial deposit?
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