1. If the MPC is 0.72 and government purchases decreases by $3,411,… 1. If the MPC is 0.72 and government purchases decreases by $3,411, h

1. If the MPC is 0.72 and government purchases decreases by $3,411,… 1. If the MPC is 0.72 and government purchases decreases by $3,411, holding all else constant, real GDP will change by _____ according to the multiplier effect (assuming no crowding out).  2. If the required reserve ratio is 14% and you deposit $118 of cash into a bank, what is the maximum amount the total deposits could increase by?  3. If the required reserve ratio is 16% and you deposit $369 of cash into a bank, what is the maximum amount the money supply could increase by? 4. Assume the required reserve ratio is 18%, the amount of deposits in a bank are $5,878, and the bank is holding $1,918 in reserves. What is the maximum amount of additional loans this bank can make? Business Economics Macroeconomics ECON 104 Share QuestionEmailCopy link