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Step 6b - The loans are spent. The checks have all cleared equal to the amount of the loan. 7- Once the money has passed through the entire banking system, and assuming that all banks lend out all of their excess reserves, then, by how much could the money supply grow? Step 6b - The loans are spent. The checks have all cleared equal to the amount of the loan. 7- Once the money has passed through the entire banking system, and assuming that all banks lend out all of their excess reserves, then, by how much could the money supply grow