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Question 1 (Worth 5 points) (04.04 MC) A bank is operating in an economy in which the required reserve ratio is 5% and the bank keeps no excess reserves. If it sells $20 million worth of government bonds to the central bank, what will be the impact on the money supply? O A decrease of the money supply of a maximum $1 million O An increase of the money supply of a maximum $1 million O A decrease of the money supply of a maximum $400 million @® An increase of the money supply of a maximum $400 million O A decrease of the money supply of a maximum $100 million Points earned on this question: 5