When the Fed sells bonds in open-market operations, it increases the money supply. If the Fed wants to decrease the money supply, it can the reserve requirement. When the Fed decreases the interest rate it pays on reserves, the money supply will . When the FOMC increases its target for the federal funds rate, the money supply will . If people decide to hold less currency after a rash of pickpocketing, the money supply .
A: Lower; increase; decrease
B: Raise; increase; increase
C: Raise; decrease; decrease
D: Lower; decrease; increase