Table 141 Monetary Aggregates of the U Assume an Original Balance Sheet: Refer to Table 14

Table 14.1 Monetary Aggregates of the U.S.Financial System
$\begin{array}{|l|r|}\hline\text { Item } & \text { Amount } \\\hline \text { Cash held by public } & \text { \$250billion } \\\hline\text { Transactions deposits } & \text { \$1,000billion } \\\hline\text { Required reserves } & \text { \$150billion } \\\hline\text { Excess reserves } & \text { \$0billion } \\\hline \text { U.S. bonds held by public } & \$ 1,000 \text { billion }\\\hline \end{array}$

Assume an original balance sheet: Refer to Table 14.1.If the Fed buys $10 billion in bonds from the public,all of the following are true except

A) The public will still hold $990 billion worth of bonds.
B) M1 will increase initially by $10 billion.
C) The discount rate will rise.
D) Additional increases in M1 will occur after the multiplier process.