The required reserve ratio is 0.2 and the Federal Reserve sells $1 million in securities. If there are no leakages and banks do not hold excess reserves, then which of the following is the change in the money supply?A. An increase of $1 millionB. An increase of $1.2 millionC. An increase of $ 5 millionD. A decrease of $1.2 millionE. A decrease of $5 million.
