When the reserve requirement is decreased, the excess reserves of member banks are _____. a. reduced, but the multiple by which the commercial banking system can lend is unaffected b. reduced and the multiple by which the commercial banking system can lend is increased c. increased and the multiple by which the commercial banking system can lend is increasedd. increased and the multiple by which the commercial banking system can lend is reduced

Respuesta :

Answer:

c. increased and the multiple by which the commercial banking system can lend is increased.

Explanation:

More Loan capacity, More Money created.

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