The Central Bank in many countries is responsible for maintaining stable prices by increasing or decreasing the money supply. Suppose that: banks hold $2.000 in reserves the public holds $5.000 in cash desired reserves ratio: R-10% Required: A. Calculate the value of the money multiplier (2.5 marks) (2.5 marks) B. Calculate the amount of the money supply C. As Eld Al Adha approaches, consumers reduce bank deposits by $1.000. Calculate the new value of the money supply. D. What do you conclude about the relationship between bank deposits, withdrawals and money supply?