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Suppose I live in a hypothetical country, Pandesia, where there is 100-percent-reserve banking. I deposit $1,000 in a checking account at the First National Bank
Suppose I live in a hypothetical country, Pandesia, where there is 100-percent-reserve banking. I deposit $1,000 in a checking account at the First National Bank of Pandesia. Using the T-account (ie: assets on the left and liabilities on the right), explain whether / how my deposit changes the money supply in Pandesia?
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