Assume that a country X has: required reserve ratio = 0.10 currency in circulation = $1,200 billion checkable deposits = $1,600 billion excess reserves = $2,500 billion money supply (M1) = C + D = $2,800 billion Calculate the existing and new money multipliers (to an approximate value) if: 1) The central bank increases required reserve ratio from 0.10 to 0.15 AND there is no change in any of the variables mentioned above. 2) The central bank increases required reserve ratio from 0.10 to 0.15 AND commercial banks increase the minimum reserves by reducing their holdings of excess reserves. Assume no change in the rest of the variables.

	A.	0.711, 0.711 and 0.711
	B.	0.725, 0.711 and 0.725
	C.	0.725, 0.711 and 0.711
	D.	0.725, 0.74 and 0.725
	E.	0.711, 0.725 and 0.711