5.PLEASE HELP WITH ONLY PART D and E IMAGE ATTACHED

ezto.mheducation.com 4)) cl Week 8: Homework 0 5 points 10 eBook Ask Print References Value Total reserves: $60 billion Transactions deposits: $400 billion Cash held by public: $350 billion Required reserve ratio: 0.10 a. How large is the money supply (M1)? b. Are the banks fully utilizing their lending capacity? Banks currently have Now assume that the public deposited another $20 billion in cash in transactions accounts. 0. What would happen to the money supply initially (before any lending takes place)? Saved Assuming the $20 billion in cash is not new money in the system. M1 will Help billion billion in excess reserves. Save 3. Exit Check my work Submit