Table 1: The Money Expansion Process ($ million, R = 0.2) Bank Acquired Reserves Required Excess Amount Bank 8: DEEosits Reserves Reserves Can Lend Bank A 1,000.00 200.00 800.00 800.00 Bank B 800.00 160.00 640.00 640.00 Bank C 640.00 128.00 512.00 512.00 Bank D 512.00 102.40 409.60 409.60 Bank B 409.60 81.92 327.68 327.68 All Other 212.20 41% 1 25.22 1 25.92 Total 5,000.00 1,000. 4,000.00 4,000.00 i. ii. iii. Explain the money-creation process in this exercise when, initially, R = 0.20. If R = 0.25, how will this affect the creation of new money in the banking system via loans (there will be more or less money created? And how much will the new excess reserves be)? If R = 0.10, how will this affect the creation of new money in the banking system via loans (there will be more or less money created? And how much will the new excess reserves be)