Which Statement Best Describes the Outcomes of a Decrease in Reserve

Multiple Choice

Which statement best describes the outcomes of a decrease in reserve requirements?

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