When a bank loans out $1000, what happens to the money supply in the long term?

Question

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When a bank loans out $1000, it increases the money supply by $1000 in the short term. However, when the recipient of the loan spends the money, it goes into circulation and may be deposited into other banks, which can then use it to create additional loans and further increase the money supply. This is known as the "multiplier effect," and it means that the increase in the money supply is likely to be greater than the initial $1000 loan.

When a Bank Loans Out $1000, What Happens to the Money