Which of the Following Best Describes the Consequences of an Increase

Multiple Choice

Which of the following best describes the consequences of an increase in reserve requirements?

A) The reserve ratio increases, the money multiplier increases, and the money supply increases.
B) The reserve ratio increases, the money multiplier decreases, and the money supply decreases.
C) The reserve ratio decreases, the money multiplier increases, and the money supply increases.
D) The reserve ratio decreases, the money multiplier decreases, and the money supply increases.