16. If many people were to suddenly deposit into their checking accounts large sums of cash previously kept in their wallets, and no offsetting actions were taken by the Fed, the result would be

a. a reduction in the U.S. money supply.

b. a decrease in M1 but an increase in M2.

c. an increase in interest rates.

d. an increase in reserves of banks and therefore an increase in the money supply.

e. both a and c.