What is the maximum amount of loans that the bank can make

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assume that the Bank of Ecoville has the following balance sheet of Fedhas 10% reserve requir.This is the Sheet for Ecoville International Bank. Assets cash is 33,000. Assets loans is 66,000. Liabilities demand deposits is 99,000. Assume that Fed lowers the reserve requirement to 8%. What is the maximum amount of loans that this bank can make?Assume that the bank makes these loans. What will the new balance sheet look like? By how much has the money supply increased and decreased?

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