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John, who kept his entire life savings under his mattress, decided to deposit it in Baltimore Bank. The total deposit was $2,500,000. If the reserve

John, who kept his entire life savings under his mattress, decided to deposit it in Baltimore Bank. The total deposit was $2,500,000. If the reserve requirement was 6%, and banks loan out every dollar above and beyond the required reserve, calculate the total impact on the money supply of his deposit.

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