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Do Auto Loans increase the money supply? (lemmy.ca)

submitted 3 weeks ago* (last edited 3 weeks ago) by toastmeister@lemmy.ca to c/economics@lemmy.ml

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Do Auto Loans increase the money supply, I cant seem to find a source for it. Its not a question on a test or anything, I was just curious, I'd always figured it was only business loans and mortgages that did so.

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[–] davel@lemmy.ml 3 points 3 weeks ago

Banks don’t really create it out of thin air.

They really do.

The Myth of the Money Multiplier - How Banking Really Works (3 mins)
How Commercial Banks Really Create Money (the Money Multiplier is a Myth). (13 mins)
The Myth of the Money Multiplier (29 mins)

Paying back the principal on your loan doesn’t make the money disappear

It really does. You know what else makes money disappear? Paying federal taxes.