(Solution) - If reserves in the banking system increase by 1 billion -(2025 Original AI-Free Solution)

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If reserves in the banking system increase by $1 billion as a result of discount loans of $1 billion and checkable deposits increase by $9 billion, why isn't the banking system in equilibrium? What will continue to happen in the banking system until equilibrium is reached? Show the T-account for the banking system in equilibrium.