QUESTION $13$

The central bank decides to implement a policy to adjust the money supply. Suppose initially there is $\backslash (\backslash$$ $1\backslash )$ trillion in currency in circulation $($ MO $)$ and the required reserve ratio is $\backslash (10\backslash \%\backslash )$ and is later decreased to $\backslash (8\backslash \%\backslash )$

Given this information which statement correct?

a$)$ The money supply is endogenous, determined by economic factors such as lending behaviour and public demand.

b$)$ The money supply is solely influenced by this central bank's policy decision.

c$)$ The money supply is inconsequential in shaping economic outcomes.

d$)$ The money supply's impact on the economy cannot be reliably determined due to its unpredictable nature.