If the federal reserve decreases the reserve rate from 5% to 2%, how does this affect the amount of money that would result because of fractional reserve banking from an initial deposit into a bank of $25,000?
a. it increases the amount by $500,000.
b. it decreases the amount by $750,000.
c. it increases the amount by $750,000.
d. it decreases the amount by $500,000.

Step-by-step explanation:

wrong it was the increase by 750,000

109 trust me

step-by-step explanation:

check above link.

graphically?   well, you graph them both, the solutions is where they both intersect each other, since there are two solutions, meaning they will meet twice, or namely the linear will run into the quadratic curve twice, and where they meet, those x,y coordinates are the solutions to the system.