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The money multiplier and the expansion of the money supply


Pancake Bank has dollar sign, 10, comma, 000 in required reserves and dollar sign, 50, comma, 000 in excess reserves. The bank is required to keep 20, percent of all deposits in reserve.
If Chinhui deposits dollar sign, 5, comma, 000 into Pancake Bank, how much in new loans can the bank make as a result of the deposit?
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