The country of apple has a fractional reserve banking system, and banks have been holding reserves in excess of the required reserve ratio. If banks begin lending more of their reserves to households and firms, what will be the effect on the effective money multiplier and the money supply in apple?

A The effective money multiplier will not change, and the money supply will not change.

B The effective money multiplier will increase, and the money supply will increase.

C The effective money multiplier will increase, and the money supply will decrease.

D The effective money multiplier will decrease, and the money supply will decrease.

E The effective money multiplier will decrease, and the money supply will increase .