The Fed Purchases $200 Worth of Government Bonds from the Public.The

Multiple Choice

The Fed purchases $200 worth of government bonds from the public.The reserve requirement is 12.5 percent,people hold no currency,and the banking system keeps no excess reserves.The U.S.money supply eventually increases by

A) $25.
B) between $200 and $300.
C) $1,600.
D) $2,500.