If the Fed Decreases the Reserve Requirement, It Will Likely

Multiple Choice

If the Fed decreases the reserve requirement, it will likely:

A) decrease the amount of excess reserves, which will eventually increase the money supply.
B) decrease the amount of excess reserves which will eventually decrease the money supply.
C) increase the amount of excess reserves which will eventually increase the money supply.
D) increase the amount of excess reserves which will eventually decrease the money supply.