A. assume second bank has deposits of $300 million. calculate the required reserves for second bank.

Suppose that Karen deposits $500 into her checking account at the bank. The reserve requirement for Karen'sbank is 12%. Assume the bank does not want to hold any excess reserves of new deposits.a. Use this information to complete the table below to show how the bank's assets and liabilities change whenKaren deposits the $500.AssetsLiabilitiesChange in Reserves: $Change in Deposits: $Change in Loans: $b. Why are deposits considered liabilities for a bank?Deposits can be loaned out by the bank.Deposits can be withdrawn at any time.Deposits pay interest to the owner.Deposits must be kept as reserves at the Federal Reserve.14.value:10.00 pointsAssume the economy is currently in equilibrium at its full-employment level of output, the money market is inequilibrium, and the MPC = 0.75.a. Suppose there is a decrease in consumer confidence that causes aggregate demand to decrease by $32billion. Show the decrease in aggregate demand on the graph.Instructions:Use the tool provided 'Aggregate Demand' to plot the new aggregate demand curve. Use the toolprovided 'New GDP