Assume that the reserve requirement is 25 percent. If the Federal Reserve buys $2,500 worth of bonds, the largest possible increase in the money supply is $ .
If someone deposits in a bank $2,500 that she had been hiding in her cookie jar, the largest possible increase in the money supply is $ .
All other things equal, if the Federal Reserve buys $2,500 worth of bonds, the money supply will expand than if someone deposits in a bank $2,500 that she had been hiding in her cookie jar.