If the Bank of Canada sells a $10 million government bond to a member of the public and the reserve ratio is 5%, the maximum possible change in the money supply is: O a decrease of $200 million. Reason: In this case, the money supply decreases, not increases. Excess reserves are reduced to $9.5 million. The money multiplier is 1.10.05 = 20. The maximum possible change in the money supply is $9.5 million X 20 : 190 million. G) a decrease of $190 million. Reason: In this case. the money supply decreases, not increases. Excess reserves are reduced to $9.5 million. The money multiplier is 1f0.05 = 20. The maximum possible change in the money supply is $9.5 million x 20 = 190 million. 0 an increase Of $200 million. Reason: In this case, the money supply decreases, not increases. Excess reserves are reduced to $9.5 million. The money multiplier is 1l0.05 : 20. The maximum possible change in the money supply is $9.5 million x 20 :190 million. 0 an increase of $190 million. Reason: In this case, the money supply decreases, not increases. Excess reserves are reduced to $9.5 million. The money multiplier is 1f0.05 = 20. The maximum possible change in the money supply is $9.5 million x 20 : 190 million