In Macroland,there Is $1,000,000 in Currency That Can Either Be

Multiple Choice

In Macroland,there is $1,000,000 in currency that can either be held by the public or used by banks as reserves.The banks' desired reserve-deposit ratio is 10%.If the public of Macroland decides to hold more currency,increasing the proportion they hold from 50% to 75%,the money supply in Macroland will

A) increase.
B) decrease.
C) remain the same.
D) may either increase or decrease.
E) will increase initially,but then return to the original level.