Suppose the reserve requirement is 10%

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Suppose the reserve requirement is 10%. If the Federal Reserve decreases the reserve requirement, banks can lend out

A. fewer reserves, thus increasing the money multiplier and increasing the money supply.

B. fewer reserves, thus decreasing the money multiplier and decreasing the money supply.

C. more reserves, thus increasing the money multiplier and increasing the money supply.

D. more reserves, thus decreasing the money multiplier and decreasing the money supply.