In a Fractional-Reserve Banking System,a Decrease in Reserve Requirements

question 88

Multiple Choice

In a fractional-reserve banking system,a decrease in reserve requirements

• A)increases both the money multiplier and the money supply.
• B)decreases both the money multiplier and the money supply.
• C)increases the money multiplier,but decreases the money supply.
• D)decreases the money multiplier,but increases the money supply.