An Increase in the Discount Rate Impacts the Money Supply

An increase in the discount rate impacts the money supply because it

A) makes it more attractive for commercial banks to borrow from the Federal Reserve.
B) decreases the interest yield on new issues of U.S. securities.
C) reduces the incentive of commercial banks to borrow from the Federal Reserve.
D) increases the Federal Reserve's earnings and, thereby, expands the money supply.