An Increase in the Reserve Deposit Ratio, 8, Will Most

Multiple Choice

An increase in the reserve deposit ratio, 8, will most likely have which of the following effects?

A) A rightward shift in the IS curve.
B) A leftward shift in the IS curve.
C) An upward shift in the LM curve.
D) A downward shift in the LM curve.
E) A downward shift in the IS curve and an upward shift in the LM curve.