Hermesia, a developed economy, has been experiencing low growth in output with a high rate of unemployment for more than a year. Two members of the National Trade Union in Hermesia, Geoffrey Miller and Arthur Davis, are discussing the relevant expansionary policies that can be taken by the central bank or the government to stimulate economic growth in Hermesia. Geoffrey suggests that the central bank should substantially lower the reserve requirements of the commercial banks so that money supply and household spending both increase. Arthur, however, disagrees. According to him, a decrease in the reserve requirements will not have the desired impact on money supply. He believes that an increase in government spending is more likely to boost the economy than an expansionary monetary policy. Which of the following, if true, will weaken Arthur's claim that a decrease in the reserve requirements will not substantially increase money supply?

A. The government of Hermesia recently introduced unemployment insurance which is expected to increase government expenses by five percent this year.

B. Foreign commercial banks operating in Hermesia account for 10 percent of the overall deposits held by commercial banks in this country

C. Due to a recent recession in Hermisa, consumers are still uncertain about economy's prospects in spite of positive growth rate.

D. The deposit multiplier in Hermesia is very high

E. Money supply growth in Hermesia has been very low at 0.9 Percent over the last two years.