When the required reserve ratio is decreased, _____.
A) the excess reserves of member banks decrease, but the money multiplier remains unaffected
B) the excess reserves of member banks decrease and the money multiplier increases
C) the excess reserves of member banks increase, but the money multiplier remains unaffected
D) the excess reserves of member banks increase and the money multiplier increases
E) the excess reserves of member banks decrease and the money multiplier decreases
Correct Answer:
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