2. Assume the reserve requirement forya banking system is 20%. Under the typical assumptions corresponding with the money multipifer, if an autonomous injection of $10,000 is made, how will it affect: (a) The initial required reserves of the individual bank into which this deposit is made? (b) The initial excess reserves of the individual bank into which this deposit is made? (c) Total deposits in the entire banking system after all of the repercussions of this injection? (d) Are there any factors that might not allow this to work in the real world in the way economic theory might suggest? If so, what are they?

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Q: What is the initial impact of this transaction?

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A:

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