Suppose the Federal Reserve establishes a reserve requirement of 21 percent and the monetary multiplier is 4.76. How much will the money supply change if excess reserves increase by $600 million

the change in the money supply is $2,856 million

Explanation:

The computation of the change in the money supply is shown below:

Money supply = Money multiplier × excess multiplier

= 4.76 × $600 million

= $2,856 million

By multiplying the money multiplier with the excess multiplier we can get the change in the moeny supply

hence, the change in the money supply is $2,856 million

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answercontrol is returned to method c;