Question: Assuming initially that r = 10 percent and c = 40 percent, a decrease in r to 5 percent causesA) the money multiplier to increase

Assuming initially that r = 10 percent and c = 40 percent, a decrease in r to 5 percent causesA) the money multiplier to increase from 2.8 to 3.11

B) the money multiplier to decrease from 3.11 to 2.8

C) the money multiplier to increase from 2 to 2.22

D) the money multiplier to decrease from 2.22 to 2

Answer:A

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