What is the maximum amount by which the following policies will change the money supply? Enter your responses below rounded to a whole number. Do not include minus signs in your answers.
a. If $100 million of bonds are bought by the Bank of Canada when the reserve ratio is 5% then the maximum change is a(n) (decrease/ increase) of $...... billion.
b. If $50 million of bonds are sold by the Bank of Canada when the reserve ratio is 7.5% then the maximum change is a(n) (decrease/ increase) of $....... million.