If a bank receives a new deposit of $10,000 . and the required reserve ratio is 25 percent, then the new money that can be created by the banking system, including the initial deposit, is:

Which of the following statements is true?

A) The higher the required reserve ratio, the higher the deposit multiplier. B) The higher the excess reserves, the higher the deposit multiplier. C) The value of the deposit multiplier falls if economic agents withdraw cash from the banking system. D) The deposit multiplier only works to increase money supply, not to decrease money supply.

Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity

a. True b. False Indicate whether the statement is true or false