Lowering the Overnight Interest Rate Will

Lowering the overnight interest rate will

A) decrease reserves, encourage banks to make fewer loans, and decrease the money supply.
B) decrease reserves, encourage banks to make fewer loans, and increase the money supply.
C) increase reserves, encourage banks to make more loans, and increase the money supply.
D) increase reserves, encourage banks to make more loans, and decrease the money supply.
E) decrease reserves; encourage banks to make more loans, and decrease the money supply.