Solved: Explain the impact on the money supply, Macroeconomics

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Explain the impact on the money supply

Problem

1. Suppose you deposit your paycheck drawn on another bank. Explain the impact on the money supply.

2. Suppose you remove $1,000 from under your mattress and deposit it in First National Bank. Using a balance sheet, show the impact of your deposit on the bank's assets and liabilities. If the required reserve ratio is 10 percent, what is the maximum amount the bank can loan from this deposit?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Explain the impact on the money supply

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