Raising the Discount Rate Is

Raising the discount rate is

A) an expansionary policy because it raises the ratio of excess to total reserves in the banking system
B) a contractionary policy on the part of member banks of the Fed because it raises firms' costs of borrowing from them
C) a contractionary policy on the part of the Fed because it raises commercial banks' cost of borrowing from it
D) an expansionary policy on the part of member banks of the Fed because it raises their profits relative to those of nonmember banks
E) an expansionary policy on the part of the Fed because increasing the interest rates banks are allowed to charge will increase their willingness to make loans