money creation multiplier use the multiplier when calculating the total increase in money in the economy

This week’s additional assignment will help you understand how the banking system create money. You will differentiate between deposits in banks, excess reserves and loans. It is important to use the multiplier when calculating the total increase in money in the economy and you should not use a computer program to do the calculations for you instead. Do not take a picture of a hand written set of numbers to submit for the week’s assignment. It is difficult to read at times.