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[–] 1 point 1 year ago* (3 children)

Am no expert but didn't the money come from the banks virtual reserves? In which case the total money in the economy hasn't changed.

Before the house purchase it would have been in other investments, no?

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  • [–] 1 point 1 year ago (2 children)

    No, because they are allowed to do partial reserves. I assumed a reserve ratio of 10:1

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