Which of the Following Statements Regarding U

Which of the following statements regarding U.S. Treasury borrowing from the nonbank public is not true?

A) As the public pays for securities legal reserves held by banks fall by the total amount of the Treasury securities
B) As the Treasury spends the borrowed funds, legal reserves held by depositories increase by the total amount borrowed
C) Following purchase of securities by the public and spending of borrowed funds by the Treasury, there is no change in the nation's money supply
D) Total spending is likely to increase as a result of the transfer of income from investors to those receiving government checks
E) If total spending increases and the economy is at or near full employment, prices will fall