Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. to simplify the analysis, suppose the banking system has total reserves of $300. determine the money multiplier and the money supply for each reserve requirement listed in the following table.

Reserve Requirement 

A. 10% MM: 1/0.1 =10, (100/10) X 600 bn = 6000 bn (total deposit)
money supply = 10 X 6000 bn =60 000 bn 

B. 20% MM: 1/0.2 =5, (100/20) X 600 bn = 3000 bn(total deposit); 
money supply = 5 X 3000 bn =15 000 bn 

A) If the reserve requirement is 10%:

money multiplier = 1 / 10% = 10money supply = money multiplier x total reserves = 10 x $300 = $3,000

B) If the reserve requirement is 20%:

money multiplier = 1 / 20% = 5money supply = money multiplier x total reserves = 5 x $300 = $1,500

Z-gadgets has developed a mini-laptop that will be marketed in developing countries. it is estimated that the requirement for the new product will start out slow and accelerate as the product becomes increasingly familiar to worldwide consumers. to begin to staff the new production facilities, the company should conduct a(n):   demand forecast