If the reserve ratio is 8 percent, banks do not hold excess reserves, and people do not hold currency, then when the Fed purchases $20 million of government bonds, bank reserves Group of answer choices increase by $20 million and the money supply eventually increases by $250 million. decrease by $20 million and the money supply eventually increases by $250 million. increase by $20 million and the money supply eventually decreases by $250 million. decrease by $20 million and the money supply eventually decreases by $250 million.