Suppose the reserve requirement is initially set at 10%. instructions: in parts a, b, and d, enter your answers as a whole number. in part c, round your answer to two decimal places.

a. at a reserve requirement of 10%, what is the value of the money multiplier? 10
b. if the reserve requirement is 10% and the fed increases reserves by $20 billion, what is the total increase in the money supply? $ 200 billion
c. suppose the fed raises the reserve requirement to 16%. what is the value of the money multiplier now? 6.25
d. assume the reserve requirement is 16%. if the fed increases reserves by $20 billion, what is the total increase in the money supply? $ 125 billion
e. raising the reserve requirement from 10% to 16% the money multiplier and the money supply.

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.