If the Federal Reserve buys $4 million in bonds from the public and the reserve requirement in the banking system is 20% (assume that banks are fully loaned up), then there will be:
a. a decrease in the money supply of $100 million. b. an increase in the money supply of $80 million. c. an increase in the money supply of $20 million. d. a decrease in the money supply of $25 million.