If the currency drain ratio is zero, which of the following situations leads to the greatest total increase in the quantity of money?
A) an increase in the monetary base of $250,000 when the desired reserve ratio is 15 percent
B) an increase in the monetary base of $100,000 when the desired reserve ratio is 5 percent
C) an increase in the monetary base of $120,000 when the desired reserve ratio is 10 percent
D) an increase in the monetary base of $100,000 when the desired reserve ratio is 50 percent
E) an increase in the monetary base of $200,000 when the desired reserve ratio is 20 percent
B
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