Explain what will happen to the money multiplier process

Reference no: EM13752227

3-3)Explain what will happen to the money multiplier process if there is an increase in the reserve requirement?
4. If the reserve ratio is 4 per cent, what is a total increase in money supply when there is a new deposit of $500?(Assume there are multiple loans with the new deposit).

Reference no: EM13752227

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