Assume that $4.4 million is deposited into a bank with a reserve requirement of 16 percent. Instructions: Round your answer to two decimal places. a. What is the money supply as a result

$3696000

Explanation:

Given:

Amount deposited into a bank is $4.4 million with a reserve requirement of 16 percent.

To find: money supply

Solution:

Amount deposited into a bank = $4.4 million = $4400000

Amount of reserve = × 4400000 = $704000

Money supply = Amount deposited into a bank - Amount of reserve

= $4400000 - $704000

=$3696000

answerreactive approach;

answer///supply is elastic, and demand is inelastic;