If the central bank in some country lowered the reserve requirement, then the money multiplier for that country
A)would increase.
B)would not change.
C)would decrease.
D)could do any of the above.

Question

Quizplus · Accepted Answer

Lowering reserve requirement means banks are required to hold less money in reserves and can lend out more money, which increases the money supply. This results in an increase in the money multiplier.

If the Central Bank in Some Country Lowered the Reserve