Which of the Following Best Describes the Consequences of a Decrease

question 51

Multiple Choice

Which of the following best describes the consequences of a decrease in reserve requirements?

• A)The reserve ratio decreases, the money multiplier decreases, and the money supply decreases.
• B)The reserve ratio increases, the money multiplier increases, and the money supply increases.
• C)The reserve ratio decreases, the money multiplier increases, and the money supply increases.
• D)The reserve ratio increases, the money multiplier decreases, and the money supply decreases.

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