Suppose that Person A deposits $150 (cash) at Bank A. Complete the following questions. Note: Keep as much precision as possible during your calculations. Your nal answer should be accurate to at least two decimal places. a) Suppose Bank A realizes that, on average, its customers only withdraw a portion of their deposits, and so it can lend out some money to other customers. Bank A now chooses the reserve ratio to be 30% or 0.3. Bank A lends out the remaining amount of money as loans to Person B. Record the effect of this transaction on the balance sheet below: Assets Liabilities Reserves = $ b) Person B borrows this money as loans from Bank A and pays to Person C. Suppose Person 0 deposits this amount with Bank B. Bank B, similar to Bank A, also chooses a reserve ratio of 0.3 and issues the remaining cash as loans to Person D. Record the effect of this transaction on the balance sheet below: Assets Liabilities Reserves = $m Deposits = $m c) Person D borrows this money as loans from Bank B and pays to Person E. Suppose Person E deposits this amount with Bank C. Bank 0 also chooses a reserve ratio of 0.3 and issues the remaining cash as loans to Person F. Record the effect of this transaction on the balance sheet below: Assets Liabilities Reserves = $ " ' ' Deposits = $m d) What is the money multiplier? Use your answer to nd the amount of new money supply created. Money multiplier = m Amount of new money created = $ W e) Suppose the reserve ratio is now 0.35. If Person A had deposited his $150 now, what would be the amount of money created now? Amount of new money created = $