Which statement is NOT true regarding the Fed's ability to create money? The Fed must physically print new banknotes in order for it to count as new money. O Money that the Fed creates can increased by the money multiplier. The Fed's ability to expand the money supply is mitigated by the presence of leakages. The Fed can create money by adding reserves electronically to banks.

.  If the required reserve ratio decreases, the money multiplier increases. money multiplier decreases. the economy will experience immediate stagflation. money multiplier stays the same.

Please answer fast please arjent help please answer following the a and b are required please answer fast

Suppose the Federal Reserve set the reserve requirement at 20%. Assume that banks lend all reserves that are not required to be held. Instructions: Round your answers to two decimal places. a. Complete the table below based on this information. Fractional Reserve Banking Transaction Sean receives $1,000 in cash and deposits the funds into his checking account. Sean's bank loans Maria all reserves that are not required to be held. Maria's bank loans Jackson all reserves that are not required to be held. Transaction Sean receives $1,000 in cash and deposits the funds into his checking account. Sean's bank loans Maria all reserves that are not required to be held. Deposit Maria's bank loans Jackson all reserves that are not required to be held. $1,000.00 Jackson's bank loans Paul all reserves that are not required to be held. Total Money Created by Transactions b. Suppose Instead that the reserve requirement is 15%. Complete the table using the new reserve requirement. Fractional Reserve…