Table 10-4 The following information pertains to the Bank of the Kawarthas. Bank of the Kawarthas Assets: Liabilities: Reserves $3,500 Deposits $70,000 Loans $66,500 Refer to Table 10-4. Assume that all other banks hold only the required 4 percent of deposits as reserves, and that people hold only deposits and no currency. If the Bank of the Kawarthas decides to hold reserves of 4 percent, by how much would the economy's money supply increase? Question 19 Answer a. $17,500 b. $35,000 c. None of the above d. $-17,500 e. $-35,000