Suppose the required reserve ratio was 10% and then it increased to 20%. This would

a) result in a drop in the money multiplier from 10 to 5.
b) increase the amount of excess reserves available.
c) result in an increase in the money multiplier from 5 to 10.
d) have no impact on the money multiplier.

Ans: a) result in a drop in the money multiplier from 10 to 5.