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The M1 money supply just went up by $900, but since the bank still has the cash, the M0 supply also still has that $900, and they go and lend it out to someone else. (?) I write a check for $400, check number 71. The M1 money supply didn't change total, it includes the $400 check and the $500 left in my account. I burn check number 71. ... Read Article
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