If the public's currency ratio (cr) is 0% and if the banks' desired reserve ratio (rr) is 5%, an increase in monetary base by $100 will result in an increase in the bank deposits by:

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Given that the public's currency ratio is 0%, all of the monetary base increase goes into the banks. With a reserve ratio of 5%, banks need to keep 5% of deposits as reserves and can lend out the rest. The money multiplier formula is 1/rr, where rr is the reserve ratio. Here, it's 1/0.05 = 20. Therefore, a $100 increase in the monetary base results in a $100 * 20 = $2,000 increase in bank deposits.

If the Public's Currency Ratio (Cr) Is 0% and If