Recall Application 2, "The Growth in Excess Reserves" to Answer

Multiple Choice

Recall Application 2, "The Growth in Excess Reserves" to answer the following questions:
-Based on what you learned from the application, the Fed can increase incentives for banks to lend less and decrease the money supply by:

A) raising the interest rate for excess reserves.
B) lowering the reserve requirement.
C) lowering the interest rate for excess reserves.
D) All of the above are correct.