If the reserve requirement is 20 percent, banks hold no excess reserves, and the Federal Reserve purchases $100 million worth of bonds on the open market, how will the monetary base change? (5 points)

	It will decrease by $100 million.
	It will increase by $100 million.
	It will decrease by $20 million.
	It will increase by $20 million.
incorrect	It will increase by $500 million.