Final answer:
The maximum potential increase in the money supply when $756 is deposited with a required reserve ratio of 6% is $12,600.12, using the money multiplier of approximately 16.67.
Step-by-step explanation:
If the required reserve ratio is 6% and a deposit of $756 is made into a bank, the maximum potential increase in the money supply can be calculated using the money multiplier formula.
The money multiplier is the inverse of the reserve ratio, so it would be 1/0.06, which is approximately 16.67.
Therefore, the maximum increase in the money supply could be $756 multiplied by the money multiplier 16.67, which equals $12,600.12.
However, this is an ideal scenario that assumes that banks lend out all excess reserves, all loans are redeposited into the banking system, and there are no currency drains.