The People's Bank of China Announced That It Was Lowering

The People's Bank of China announced that it was lowering by 1.08 percentage points the one-year lending rate in response to the slowdown in the Chinese economy. This rate is the Chinese equivalent of the federal funds rate in the United States. www.nytimes.com, 11/26/2008
This policy ________ the supply of loanable funds. As a result, the long-term real interest rate ________, and planned expenditures ________.

A) increases; increases; increase
B) decreases; decreases; decrease
C) increases; decreases; increase
D) decreases; increases; increase