Problem
1. Why is the actual money multiplier usually less than the simple money multiplier?
2. Why can't a bank lend out all of its reserves?
3. How does a commercial bank increase the money supply?
4. What is the current required reserve ratio? What would happen to the money supply if the Fed decreased the ratio?
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.