![](https://cos-cdn.shuashuati.com/pipixue-web/2020-1231-2005-12/ti_inject-812ce.png)
Suppose the Bank of England purchases a £1,000 government bond from you. If you deposit the entire £1,000 in your bank, what is the total potential change in the money supply as a result of the Bank of England’s action if the your bank’s reserve ratio is 20 per cent?