If the FOMC Orders the Sale of T-Bills in the Open

Multiple Choice

If the FOMC orders the sale of T-bills in the open market, then bank reserves are

A) decreased, but the money supply will remain unchanged.
B) decreased, and a multiple contraction of the money supply will occur.
C) increased, but the money supply will remain unchanged.
D) increased, and a multiple expansion of the money supply will occur.