Assuming initially that the required reserve ratio$=10\%,$ the

currencydash$$deposit

ratio$=40\%,$ and the excess reserve ratio$=0,$ an increase in the

currencydash$$deposit

ratio to$50\%$ causes the M$1$ money multiplier to$\_\_\_\_\_\_\_\_,$ everything else held constant.

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Part $1$

A$.$

decrease from $2\mathrm{.}8$ to $2\mathrm{.}5$

B$.$

increase from $2\mathrm{.}5$ to $2\mathrm{.}8$

C$.$

increase from $2\mathrm{.}33$ to $2\mathrm{.}8$

D$.$

decrease from $2\mathrm{.}8$ to $2\mathrm{.}33$