If the reserve ratio is 15 percent, and banks do not hold excess reserves, and people hold only deposits and no currency, then when the fed sells $25.5 million worth of bonds to the public, bank reserves
a. increase by $25.5 million and the money supply eventually increases by $382.5 million.
b. increase by $25.5 million and the money supply eventually increases by $170 million.
a. decrease by $25.5 million and the money supply eventually increases by $382.5 million.
a. decrease by $25.5 million and the money supply eventually increases by $170 million.

The money supply decreases by $25.5 million and money supply decreases by $170 million.

Explanation:

The reserve ratio is 15%.

The reserve sells bonds worth $25.5 million to the public.

This will cause a reduction of $25.5 million reserves as banks will need to pay  Fed for the bonds.

The money supply will change by

=

=

=

= - $170 milion

So, the money supply will decrease by $170 million.

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.

answer; burned it;