Assume that the reserve ratio is 20%, and all banks maintain 5% excess reserves. If the central bank buys $200 in bonds and people's currency:deposit ratio is 1/4, then
(A) The maximum possible increase in the money supply is $500
(B) The maximum possible increase in the money supply is $750
(C) The maximum possible increase in the money supply is $1000
(D) The maximum possible reduction in the money supply is $250
