单选题

A decrease in the required reserve ratio（）。

A、 increases the money supply by decreasing the deposit expansion multiplier
B、 decreases the money supply by decreasing the deposit expansion multiplier.
C、 increases the money supply by increasing the deposit expansion multiplier.

【正确答案】 C

【答案解析】

The deposit expansion multiplier increases when the required reserve ratio falls and the money supply increases as a result.