Suppose you have $10,000 in your checking account. you withdraw $500 cash from your account and hide it under your pillow for future use. if the required reserve ratio is 10%, what will be the maximum impact on money supply today as a result of your action?
a. the money supply will decrease by $4,500.
b. the money supply will decrease by $5,000.
c. the money supply will decrease by $500.
d. there will be no impact on the money supply.
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