During a Period of Inflation, the Fed Is Likely To

During a period of inflation, the Fed is likely to:

A) sell government securities to banks in order to reduce the amount of loanable funds.
B) buy government securities from banks in order to reduce the amount of loanable funds.
C) raise taxes in order to reduce the money supply.
D) cut the required reserve ratio in order to reduce the amount of excess reserves banks have to loan out.
E) cut the discount rate in order to increase the affordability of loanable funds.