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Business, 25.11.2021 14:20 Allybubbs

Assume the Fed's reserve requirement is 5 percent and all banks besides the Bank of Bross are exactly in compliance with the 5 percent requirement. Further assume that people hold only deposits and no currency. Starting from the situation as depicted by the T-account, if the Bank of Bross decides to make new loans so as to end up with no excess reserves, then by how much does the money supply eventually increase

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