Suppose that the government of South Africa charters a private jet and convinces Elon Musk to drop $100$ million newly printed South African dollars in Cape Town. What will be the effect on the money supply?

The money supply will increase because there will be more currency in circulation

The money supply will decrease because the value of money has now decreased significantly with the printing of new money

This will have no effect on the money supply because increases$/$decreases of currency in ciculation affects only the monetary base.

The effect will be ambiguous depending on people decide to hold the money in their pocket or deposit it in checking accounts