When there is a decrease in the required reserve ratio ( r_r )what will be the change, if any, in the money supply multiplier?

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When the required reserve ratio decreases, banks are required to hold less money in reserve for each deposit they receive. This allows them to lend out a greater portion of their deposits, which increases the money supply through the money creation process. The money supply multiplier, which quantifies this process, is inversely related to the reserve ratio. Therefore, a decrease in the required reserve ratio strengthens or increases the money supply multiplier.

When There Is a Decrease in the Required Reserve Ratio