Todd, you'll have to do some homework and read the entire article. "deposits will increase by $5" is the same as "bank made $5 in new loans on the $1 add'l reserves".
I don't have time to put on an econ 101 course here.
"deposits will increase by $5" is the same as "bank made $5 in new loans on the $1 add'l reserves".All you need to do is show how.
Please show us how a bank with $200 billion in borrowed T Bills can loan $2 trillion.
I don't have time to put on an econ 101 course here.
You don't have the knowledge or ability either.