Final answer:
The money multiplier formula is used to calculate the potential total change in the M1 money supply in a banking system, but it does not apply to calculating stock issuance/repurchase in MBs.
Step-by-step explanation:
The formula for calculating the issuance or repurchase of stock in million of dollars (MBs) is not provided in the given information. However, if you are looking to calculate the total change in the M1 money supply due to banking activities such as lending, the relevant formula is the money multiplier formula.
This is used to determine the maximum potential increase in the money supply in an economy based on the level of reserves held by the bank. The money multiplier is calculated as 1 divided by the reserve requirement ratio set by the central bank. To calculate the total change in the money supply, you would multiply the excess reserves by the money multiplier.
For instance, if a bank has excess reserves of $9 million, and the reserve requirement is 10%, the money multiplier would be 10 (1 / 0.10), and the total change in the M1 money supply would be $9 million times 10, which equals $90 million.