Answer: Money supply will increase by $54,000
Explanation:
Required reserve ration or r= 10% = 0.10
Initial deposits = $5400
We use the money multiplier formula to find out the value of the multiplier. It is given by,

Money multiplier shows us how much does the supply of money change for a change in the deposits. So, using the value of the multiplier = 10, we have change in money supply of,



Thus, the money supply in the economy will increase by $54,000