Other Things Constant, If the Fed Decreased the Discount Rate

Multiple Choice

Other things constant, if the Fed decreased the discount rate,

A) the earnings of the Fed would increase.
B) the incentive of commercial banks to borrow from the Fed would be reduced.
C) borrowing from the Fed will tend to increase and the money supply will tend to expand.
D) borrowing from the Fed will tend to decrease and the money supply will tend to decline.