If the Federal Reserve decreases the reserve rate from 10% to 8%, how does this affect the amount of money that would result because of fractional-reserve banking from an initial deposit into a bank of $40,000?
a. It increases the amount by $400,000.
b. It decreases the amount by $400,000.
c. It decreases the amount by $100,000.
d. It increases the amount by $100,000.