Suppose that the Federal Reserve purchases $10,000 worth of securities from the non-bank public. Then what happens next?
R decrease by $10,000 and MB rises by $10,000
C and R both decrease by $10,000, and MB falls by $10,000
C increases by $10,000 and the MB increases by $10,000
C increases by $10,000 and the MB falls by $10,000