Suppose the following data apply:
Total bank Reserves: $6 billion
Total bank deposits: $100 billion
Cash held by public: $10 Billion
Bonds held by public: $220 Billion
Stocks held by public: $140 Billion
Gross domestic product: $5 trillion
Interest rate: 6 percent
Required reserve ratio: 0.05
A. How large is the money supply?
B. How much excess reserves are there?
c. Illustrate what is the money multiplier?
d. Illustrate what is the available lending capacity?"