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Initially, all banks have zero excess reserves and the desired reserve ratio is 10%. The Bank of Canada buys $1 million in government securities from

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Initially, all banks have zero excess reserves and the desired reserve ratio is 10%. The Bank of Canada buys $1 million in government securities from a bond dealer who deposits the cheque in Bank A. The bank makes as large a loan as it can to a construction company, which buys materials from a lumber company who deposits the cheque in Bank B. Bank B makes as large a loan as possible to a car dealership. By how much has the money supply grown to this point

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