Under Which of the Following Circumstances Is the Size of the Effect

Multiple Choice

Under which of the following circumstances is the size of the effect of a given deposit of cash into a demand deposit account on the money supply greater?

A) the smaller the fraction of money people want to hold as currency, and the greater the fraction of deposits banks want to hold as reserves
B) the greater the fraction of money people want to hold as currency, and the greater the fraction of deposits banks want to hold as reserves
C) the greater the fraction of money people want to hold as currency, and the smaller the fraction of deposits banks want to hold as reserves
D) the smaller the fraction of money people want to hold as currency, and the smaller the fraction of deposits banks want to hold as reserves