Which Statement(s) Is/are TRUE? I

Multiple Choice

Which statement(s) is/are TRUE? I. Tighter lending standards tend to increase the money multiplier, making it easier for the Fed to use its tools effectively.
II) If foreigners become less confident in the ability of the U.S. dollar to hold its value, the actual money multiplier will rise.
III) If there is a general rise in fear of the financial system, the potential money multiplier will fall.

A) I only
B) II only
C) III only
D) I, II, and III only