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 depository institutions. Which effect listed below is not likely to happen in this case?

A) The money supply will fall in the short run
B) Total reserves of depository institutions should be unchanged
C) Excess reserves will increase
D) Total spending should rise
E) All of the above are likely to happen