Question: Assuming initially that the required reserve ratio = 1 0 % , the currency - deposit ratio = 4 0 % , and the excess

Assuming initially that the required reserve ratio =10%, the currency-deposit ratio =40%, and the excess reserve ratio =0, an increase in the currency-deposit ratio to 50% causes the M1 money multiplier to ________, everything else held constant.
Group of answer choices
decrease from 2.8 to 2.33
increase from 2.33 to 2.8
decrease from 2.8 to 2.5
increase from 2.5 to 2.8

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