Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

• A. rise by an amount that depends on the bank’s reserve ratio
• B. rise by less than the amount of the deposit
• C. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio
• D. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio
• E. be unchanged