Exhibit 19-3  Balance Sheet of Tucker National Bank Assume All

Exhibit 19-3  Balance sheet of Tucker National Bank Assume all banks in the system started with balance sheets as shown in Exhibit 19-3 and the Fed made a $100,000 open market purchase. The result would be a(n) :

A) $500,000 expansion of the money supply.
B) $100,000 expansion of the money supply.
C) $20,000 contraction of the money supply.
D) infinite contraction of the money supply.
E) infinite expansion of the money supply.