If a Bank Uses $200 of Excess Reserves to Make

Multiple Choice

If a bank uses $200 of excess reserves to make a new loan when the reserve ratio is 15 percent,this action by itself initially makes the money supply

A) and wealth increase by $200.
B) and wealth decrease by $200.
C) increase by $200 while wealth does not change.
D) decrease by $200 while wealth decreases by $200.