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Question 5 (Worth 5 points) (04.04 MC) A bank decides to increase its holding of deposits in reserve, above the required rate. How will this action affect the expansion of the money supply? O No impact on the growth potential of the money supply—the behavior of a single bank is irrelevant to the aggregate economy. O Decrease the growth potential of the money supply—increasing the reserve requirement lowers the money multiplier. @® Decrease the growth potential of the money supply—holding more cash in reserve means less money will be lent to borrowers. O Increase the growth potential of the money supply—increasing the reserve requirement increases the money multiplier. O Increase the growth potential of the money supply—holding more cash in reserve means more money will be lent to borrowers. Points earned on this question: 5