If the Fed _____________________,The Money Supply Will Ultimately __________

Multiple Choice

If the Fed _____________________,the money supply will ultimately __________.

A) raises the discount rate relative to the federal funds rate; decrease
B) lowers the discount rate relative to the federal funds rate; increase
C) lowers the discount rate relative to the federal funds rate; decrease
D) raises the discount rate relative to the federal funds rate; increase
E) a and b