If the Federal Reserve Authorities Were Attempting to Reduce Demand-Pull

Multiple Choice

If the Federal Reserve authorities were attempting to reduce demand-pull inflation, the proper policies would be to

A) sell government securities, raise reserve requirements, raise the discount rate, and increase the interest paid on reserves held at the Fed banks.
B) buy government securities, raise reserve requirements, raise the discount rate, and reduce the amount of interest paid on reserves held at the Fed banks.
C) sell government securities, lower reserve requirements, lower the discount rate, and increase the interest paid on reserves held at the Fed banks.
D) sell government securities, raise reserve requirements, lower the discount rate, and increase the interest paid on reserves held at the Fed banks.