Question Completion Status: Assume that the reserve requirement is 10%. A bank has $20 billion in demand deposits. How much money is the bank required to keep in reserves? O $4 billion $1.5 billion $3 billion $2 billion QUESTION 25 If the Federal Reserve decreases the money supply, which of the following events occurs? Interest rates decrease, aggregate demand decreases and GDP decreases. O Interest rates increase, aggregate demand increases, and GDP increases. Interest rates increase, aggregate demand decreases and GDP decreases. Interest rates decrease, aggregate demand increases and GDP increases