Now Second Republic Bank uses the entire $$5,600$ in excess reserves that resulted from Alex's deposit to create a loan for Becky in the form of a checkable deposit.

The money supply now is $$

Suppose Second Republic Bank lends all its new excess reserves to Clancy, who writes a check to Eileen, who deposits the money into her account at Third Fidelity Bank. Then Third Fidelity lends all its new excess reserves to Hubert. Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves.

Under these assumptions, the $$7,000$ injection into the money supply results in an overall increase of $$ in checkable deposits. Therefore, the total money supply increases to