If the reserve ratio is 15 percent,and banks do not hold excess reserves,and people hold only deposits and no currency,then when the Fed sells $25.5 million worth of bonds to the public,bank reserves
A)increase by $25.5 million and the money supply eventually increases by $382.5 million.
B)increase by $25.5 million and the money supply eventually increases by $170 million.
C)decrease by $25.5 million and the money supply eventually decreases by $382.5 million.
D)decrease by $25.5 million and the money supply eventually decreases by $170 million.

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The Answer of If the reserve ratio is 15 percent,and banks do not hold excess reserves,and people hold only deposits and no currency,then when the Fed sells $25.5 million worth of bonds to the public,bank reserves
A)increase by $25.5 million and the money supply eventually increases by $382.5 million.
B)increase by $25.5 million and the money supply eventually increases by $170 million.
C)decrease by $25.5 million and the money supply eventually decreases by $382.5 million.
D)decrease by $25.5 million and the money supply eventually decreases by $170 million.

If the Reserve Ratio Is 15 Percent,and Banks Do Not