Yesterday, bank A had no excess reserves. Today it received a new deposit of $5,000. A) If the bank maintains a reserve requirement of 2 percent,

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Yesterday, bank A had no excess reserves. Today it received a new deposit of $5,000. A) If the bank maintains a reserve requirement of 2 percent, what is the maximum load that bank A can make?B) What is the maximum amount by which the money supply can be increased as a result of bank A’s new loan?

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