Question: Please answer bonus problems questions 1 and 2 are already answered 1. If the required reserve ratio is 5% and the Fed loans $1500 to

Please answer bonus problems questions 1 and 2 are already answered

1. If the required reserve ratio is 5% and the Fed loans $1500 to the bank, what is the money multiplier ratio? 20 2. From Problem 1, the total amount of new money that will be created is? 30000 (Bonus problem 1) Make a graph describing the money creation process in Problem 1 & 2 for the first 5 commercial banks in the banking system? (Bonus problem 2) Briefly describes with the T-table what happens to those 5 banks' balance sheets when participating in the money creation process

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