why would you think businesses paying employees makes the banking system shaky? I think it would be quite a bit more shaky if they weren't getting paid. Provided the money stays in the US, and in the bank, it really doesnt have an effect on the model what's actually being done with it.
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I did not say that. However, could you please answer my question as to whether the government contactor in your case deposited the $100 million into a checking or savings account at Bank 0. Do not forget, we are discussing economic theory; therefore, please tell us how this theory works in the real word. Please don't duct my questions.
I cant answer your question. its not my model. though its certainly something that businesses use bank accounts for so its entirely possible.
Thanks for you honest response to my questions.