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.If the banks' desired reserve-deposit ratio increases from 10% to 15% and the public continues to hold the same amount of currency,the money supply in Macroland will

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