The reserve requirement in Petmeckistan is \[20\%\]. If the central bank buys \[\$1000\] in bonds, what is the maximum possible change in the money supply? Choose 1 answer: Choose 1 answer: (Choice A) The money supply increases by \[\$4000\] A The money supply increases by \[\$4000\] (Choice B) The money supply decreases by \[\$5000\]. B The money supply decreases by \[\$5000\]. (Choice C) The money supply increases by \[\$1000\] C The money supply increases by \[\$1000\] (Choice D) The money supply increases by \[\$5000\]. D The money supply increases by \[\$5000\]. (Choice E) The money supply decreases by \[\$1000\] E The money supply decreases by \[\$1000\]Assume that an economy has an upward-sloping short-run aggregate supply curve. Which of the following would most likely occur as a result of expansionary monetary policy? Choose 1 answer: Choose 1 answer: (Choice A, Checked) Aggregate demand decreases A Aggregate demand decreases (Choice B) Money supply decreases B Money supply decreases (Choice C) The interest rate increases C The interest rate increases (Choice D) The price level increases D The price level increases (Choice E) Real output decreases E Real output decreases