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Table 29-5.
Bank of Kopeka
-Refer to Table 29-5.Assume the Fed's reserve requirement is 9 percent and all banks besides the Bank of Kopeka are exactly in compliance with the 9 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 Kopeka 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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