A Lowering of the Required Reserve Ratio Might Not Expand

Multiple Choice

A lowering of the required reserve ratio might not expand the money supply if:

A) tax rates are also lowered at the same time.
B) tax rates are increased at the same time.
C) borrowers are unwilling to borrow the new funds the banks have available for loans.
D) borrowers are willing to borrow the new funds the banks have available for loans..
E) borrowers expand their borrowing because of the lower interest rates that banks offer.