Assume the fed is trying to decide whether to lower the required reserve ratio to 6%. currently, the required reserve ratio is 10%. if banks keep no excess reserves, how much more would the money supply increase if the fed lowers the reserve ratio when someone deposits $200 into a checking account?

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units. required: prepare a production budget by month and in total, for the second quarter.