Problem
While gardening in his backyard, Bob finds a mason jar containing $100,000 in currency. After he deposits the money in his bank, where the reserve requirement is 5 percent, by how much will the money supply eventually increase? Suppose Bob decides to keep $5,000 of his find as cash and deposits only $95,000 in his bank. By how much will the money supply increase?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.