Suppose the government increases education spending by $20 billion. If the marginal propensity to consume is 0.87, how much will total spending increase? Instructions: Round your response to one decimal place. billion Given the following data, answer four questions about the money supply and the money multiplier. Value $30 billion $500 billion $200 billion $300 billion Total reserves: Transactions deposits: Cash held by public: Bonds held by public: Stocks held by public: Gross domestic product: Interest rate: Required reserve ratio: $100 billion $8 trillion 8 pecent 0.05 a. How large is the money supply (M1)? billion b. How much excess reserves are there? billion Instructions: Round your response to two decimal places. c. What is the money multiplier? d. What is the available lending capacity of the banking system? billion Suppose the government increases education spending by $20 billion. If the marginal propensity to consume is 0.87, how much will total spending increase? Instructions: Round your response to one decimal place. billion Given the following data, answer four questions about the money supply and the money multiplier. Value $30 billion $500 billion $200 billion $300 billion Total reserves: Transactions deposits: Cash held by public: Bonds held by public: Stocks held by public: Gross domestic product: Interest rate: Required reserve ratio: $100 billion $8 trillion 8 pecent 0.05 a. How large is the money supply (M1)? billion b. How much excess reserves are there? billion Instructions: Round your response to two decimal places. c. What is the money multiplier? d. What is the available lending capacity of the banking system? billion