In the hypothetical country of Middlelandia, banks are required to hold 20% of checkable deposits as reserves, and the public holds none of the loans as currency in circulation and redeposits all of the loans. Complete the table (calculations should be to no more than two decimal places). Round Deposits Required Reserves of 20% Excess Reserves New Loans None of loan proceeds are held as currency in circulation by people Loan proceeds redeposited 1 $500 2 3 4 5 6 7 8 9 10 Totals Calculate the new money supply. Calculate the money multiplier.

In the hypothetical country of Middlelandia, banks are required to hold 20% of checkable deposits as reserves, and the public holds none of the loans as currency in circulation and redeposits all of...

In the hypothetical country of Middlelandia, banks are required to hold 20% of checkable deposits as reserves, and the public holds none of the loans as currency in circulation and redeposits all of the loans.

Complete the table (calculations should be to no more than two decimal places).

Round	Deposits	Required Reserves of 20%	Excess Reserves	New Loans	None of loan proceeds are held as currency in circulation by people	Loan proceeds redeposited
1	$500
2
3
4
5
6
7
8
9
10
Totals

Calculate the new money supply.

Calculate the money multiplier.

Jun 07, 2022

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In the hypothetical country of Middlelandia, banks are required to hold 20% of checkable deposits as reserves, and the public holds none of the loans as currency in circulation and redeposits all of...

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