Suppose r 10 percent and John walks into his bank, withdraws $2,000 in cash, and burns the money.What is the maximum change in the money supply as a result? The Fed creates $100,000 in new money that...

Suppose r 10 percent and John walks into his bank,

withdraws $2,000 in cash, and burns the money.What is

the maximum change in the money supply as a result?

The Fed creates $100,000 in new money that is

deposited in someone’s checking account in a bank.