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(2 points) Suppose there is no cash drain in the banking system and the commercial banks' desired reserve ratio is 20 percent. If the Bank

(2 points) Suppose there is no cash drain in the banking system and the commercial banks' desired reserve ratio is 20 percent. If the Bank of Canada purchases $500,000 worth of government bonds from the public, the public's deposits at the commercial banks will eventually increase by __________ and the banks' reserves will increase by __________. a. $2,500,000; $2,000,000. b. $2,500,000; $500,000. c. $2,000,000; $500,000. d. $500,000; $100,000. e. $400,000; $100,000

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