Consider the Money and Credit Expansion Process

Multiple Choice

Consider the money and credit expansion process.When r = the desired reserve ratio, what is the total change in chequable deposits equal to?  

A)  The total change in chequable deposits equals the initial change in excess reserves multiplied by r. 
B)  The total change in chequable deposits equals the initial change in excess reserves plus the change in desired reserves. 
C)  The total change in chequable deposits equals the initial change in excess reserves divided by 1/r. 
D)  The total change in chequable deposits equals the initial change in excess reserves multiplied by 1/r.