Suppose the Federal Reserve increased deposits by $100 billion, but the reserve requirement on all deposits was 100%. What impact would the change in deposits have on the money supply?

Select one:

a.

The money supply would increase by $100 billion.

b.

The money supply would increase by an infinite amount.

c.

The money supply would decrease by $100 billion.

d.

The money supply would decrease by an infinite amount.

e.

The money supply would not change.