If the Fed ______________________,The Money Supply Will Ultimately __________

Multiple Choice

If the Fed ______________________,the money supply will ultimately __________.

A) raises the required reserve ratio from 8 percent to 10 percent; decrease
B) lowers the required reserve ratio from 10 percent to 8 percent; increase
C) lowers the required reserve ratio from 10 percent to 8 percent; decrease
D) raises the required reserve ratio from 8 percent to 10 percent; increase
E) a and b