Step 25: Three, no, FOUR types of Multiple Deposit Expansion

Type 1: Calculate initial change in excess reserves

-aka:the amount a single bank can loan from initial deposits

Type 2: Calculate change in loans in the banking system (money multiplier)

Type 3: Calculate change in the money supply

-sometimes Types 2 and 3 will have the same results-i.e. no FED involvement

Type 4: Calculate change in demand deposits