Question: Assuming initially that the required reserve ratio - 1 0 % , the currency - deposit ratio - 7 5 % , and the excessreserve

Assuming initially that the required reserve ratio -10%, the currency-deposit ratio -75%, and the excessreserve ratio =156%, an increase in the currency-deposit ratio to 150% causes the M1 money multiplier toeverything else held constant a. decrease from 0.73 to 0.61 b. increase from 0.73 to 0.78 c. increase from 1.54 to 1.67 d. decrease from 1.67 to 1.54

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