Suppose that the money multiplier is fixed and the Feds balance sheet is

Federal Reserve Bank
Asset		Liabilities
Securities	$900	Currency held by nonbank public	$700
Gold	$100	Vault cash held by banks	$100
		Reserve deposits	$200
Total assets	$1000	Total liabilities	$1000

and the commercial banks balance sheet is

Consolidated Balance Sheet of Banks
Assets		Liabilities
Vault cash	$100	Deposits	$3000
Reserve deposits	$200
Loans	$2700
Total assets	$3000	Total liabilities	$3000

Suppose that the Fed increases the monetary base by 15%. The money supply will

	A.	increase by $555
	B.	increase by $450.
	C.	increase by $360
	D.	increase by $150
	E.	increase by $1000