Suppose the Treasury Is Faced with a Budget Surplus and Chooses

Suppose the Treasury is faced with a budget surplus and chooses to retire debt previously issued. According to your text, several effects are likely to occur if the retired debt was held by the nonbank public. Which effect listed below is not likely to happen in this case?

A) Nation's money supply is likely to fall
B) Total spending in the economy is likely to fall
C) Interest rates are likely to decline
D) Reserves of depository institutions are likely to be unchanged
E) All of the above are likely to happen