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assume that when $100 of new reserves entering the banking system the money supply ultimately increases by 800 assume also that no banks hold excess
assume that when $100 of new reserves entering the banking system the money supply ultimately increases by 800 assume also that no banks hold excess reserves and that the entire money supply consists of Bank deposits if at a point in time reserved for all banks amount to 750 then at that same point in time loans for all banks amount to $6,000
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