Expressed by the formula, it is m1= (1+k) h/(rd+re+k).
What the central bank can decide is Rd, and commercial banks can decide Re, K and H by the public.
Then it is obvious that the central bank will tighten monetary policy, raise the deposit reserve ratio, and the money supply will decrease; Or commercial banks feel that the policy direction of the central bank has increased the excess reserve ratio, and the money supply will also decrease.
This is the principle. Add some woRds to ramble, analyze the definitions of rd, Re, k and h, and explain which ones are decided by the public and why.