Recall the Application About the Fed's Response to the Collapse

Multiple Choice

Recall the Application about the Fed's response to the collapse of the investment house Bear Stearns as well as its handling of the 2008 financial crisis with respect to other financial institutions to answer the following question(s) .
-Recall the Application. In response to the financial crisis, the Fed implemented a new policy in which it began to pay interest on deposits held at the Fed. This move would ________ deposits held at the Fed and ________ the Fed's ability to make loans.

A) decrease; decrease
B) decrease; increase
C) increase; decrease
D) increase; increase