4. refer to table 16.2 and assume that the fed's reserve ratio is 10 percent and the economy is in a severe recession. also sup  pose that the commercial banks are hoarding all excess reserves (not lending them out) because of their fear of loan defaults. finally suppose that the fed is highly concerned that the banks will suddenly  lend out  these excess reserves  and possibly  con  tribute  to inflation  once  the  economy  begins  to  recover  and confidence  is restored . by  how many percentage  points  would the fed  need to increase  the reserve ratio  to  eliminate  one -third of the excess reserves? what would be the size of the monetary multiplier  before and after  the change  in the reserve ratio ? by how much  would the lending  potential of  the banks decline  as a result  of the increase  in the reserve  ratio ? l016.3