The Accompanying Table Gives Data for a Commercial Bank or
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Multiple Choice

$$\begin{array} { | c | c | c | } \hline \text { (1) } & ( 2 ) & ( 3 ) \\\hline \text { Legal Reserve Ratio (\%) } & \text { Checkable Deposits } & \text { Actual Reserves } \\\hline 10 & \$ 40,000 & \$ 10,000 \\\hline 20 & 40,000 & 10,000 \\\hline 25 & 40,000 & 10,000 \\\hline 30 & 40,000 & 10,000 \\\hline\end{array}$$ The accompanying table gives data for a commercial bank or thrift. If the legal reserve ratio falls from 25 percent to 10 percent, excess reserves of this single bank will

A) rise by $6,000 and the monetary multiplier will increase from 4 to 10.
B) rise by $60,000 and the monetary multiplier will increase from 4 to 10.
C) fall by $6,000 and the monetary multiplier will decline from 30 to 10.
D) fall by $2,000 and the monetary multiplier will decline from 10 to 4.