Suppose that you sold a basketball ticket for the SEC tournament for $750. Assuming that you deposit the entire $750 in your bank and that the RR = 10%, Answer the following questions while also using the same assumptions in book/lecture slide. Correct answers contain no decimals. Please report them as they are.
a) What is the total change in checking account deposits?
Total change in checking account deposits is?
b) How much new money is created? (or what is the change in money supply given the above state conditions?)
Total change in money supply is?
c) The amount of new money created in this example would be higher or lower than in the real world.
The amount of money created this way would be (higher or lower?) than in the real world.