Mhm bank currently has $900 million in transaction deposits on its balance sheet. the current reserve requirement is 8 percent, but the federal reserve is increasing this requirement to 10 percent. a. show the balance sheet of the federal reserve and mhm bank if mhm bank converts all excess reserves to loans, but borrowers return only 60 percent of these funds to mhm bank as transaction deposits. b. show the balance sheet of the federal reserve and mhm bank if mhm bank converts 75 percent of its excess reserves to loans and borrowers return 80 percent of these funds to mhm bank as transaction deposits.

Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.