Question: Which statement best describes the outcomes of a decrease in the reserve requirement in a fractional reserve system? a.The money multiplier increases, but the money

Which statement best describes the outcomes of a decrease in the reserve requirement in a fractional reserve system?

a.The money multiplier increases, but the money supply decreases.

b.Both the money multiplier and the money supply decrease.

c.The money multiplier decreases, but the money supply increases.

d.Both the money multiplier and the money supply increase.

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