Since the Mid-1980s, If the Fed Wanted to Shift to a More

Multiple Choice

Since the mid-1980s, if the Fed wanted to shift to a more expansionary monetary policy, it would

A) expand the reserves available to the banking system, which would drive down short-term interest rates.
B) reduce the reserves available to the banking system, which would drive down short-term interest rates.
C) expand the reserves available to the banking system, which would drive up short-term interest rates.
D) reduce the reserves available to the banking system, which would drive up short-term interest rates.