In Macroland There Is $1,000,000 in Currency That Can Either

Multiple Choice

In Macroland there is $1,000,000 in currency that can either be held by the public as currency or deposited into banks.Banks'desired reserve/deposit ratio is 10%.If the public of Macroland decides to hold more currency, increasing the proportion they hold from 50% to 75%, the money supply in Macroland will ______.

A) increase.
B) decrease.
C) remain the same.
D) either increase or decrease.