Assume that commercial banks are holding excess reserves because business firms and consumers are not willing to borrow money A decrease in the discount rate is likely to ?

• A. increase the money supply because it is now cheaper for banks to borrow from the central bank
• B. decrease the money supply because it will now be more expensive for business firms and consumers to borrow money
• C. Not change the money supply because banks already have excess reserves they cannot lend
• D. Decrease the money supply because it is now cheaper for banks to borrow from the central bank instead instead of buying government securities