Assuming Initially That the Required Reserve Ratio = 10%,the Currency-Deposit

Assuming initially that the required reserve ratio = 10%,the currency-deposit ratio = 75%,and the excess reserve ratio = 156%,an increase in the excess reserve ratio to 200% causes the M1 money multiplier to ________,everything else held constant.

A) increase from 0.15 to 0.33
B) decrease from 0.73 to 0.61
C) increase from 0.54 to 0.67
D) decrease from 1.67 to 1.54

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