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I think it's the 1st one but please confirm this thanks Question 25 2 pts If the reserve ratio is 5 percent, banks do not

I think it's the 1st one but please confirm this thanks

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Question 25 2 pts If the reserve ratio is 5 percent, banks do not hold excess reserves, and people do not hold currency, then when the central bank purchases $20 million worth of government bonds, bank reserves O a. increase by $20 million and the money supply eventually increases by $400 million. O d. decrease by $20 million and the money supply eventually decreases by $200 million. O c. increase by $20 million and the money supply eventually increases by $200 million. O b. decrease by $20 million and the money supply eventually decreases by $400 million

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