Given an initial deposit of $500,000, and a required reserve ratio of 15%:
a) Calculate the simple money multiplier:
b) Calculate the total change in the money supple from this deposit:
c) If the required reserve ratio was decreased to 14%, calculate the simple money multiplier:
d) Calculate the total change in the money supple from the deposit based on the new RRR:
e) Is the decrease of the required reserve ratio from 15% to 14% an example of expansionary monetary policy of contractionary monetary policy? Explain.